Deutsche Bank revealed a quarterly net income of 1.031 billion euros ($1.06 billion) on Wednesday, exceeding analysts' projected amount of 997 million euros based on LSEG data. Compared to the prior year, this represented an 8% decrease, though it was 35% greater than the prior quarter. It marked the thirteenth consecutive quarter of profitability for the lender since the initiation of its reorganization in 2019.
On Wednesday, Deutsche Bank stocks surged upon the announcement of slightly better than forecasted third-quarter results. The lender also declared an intention to expand and speed up shareholder distributions. Their net profit for the quarter constituted of 1.031 billion euros ($1.06 billion) and was down 8% from the previous year but up 35% from the quarter. The bank is expecting around 29 billion euros in revenues for the full year, higher than estimated. Deutsche Bank CFO James von Moltke stated that underlying revenues from the investment banking unit were broadly in line with the market. The corporate banking business, due to the advantageous interest rate environment, had revenues that rose 21% compared to the same quarter of the previous year. Nevertheless, revenues from the investment unit depreciated 4% year-on-year to 2.27 billion euros and 12% in the first nine months of the year to 7.3 billion. UBS analysts recognized the "substantial improvement in capital" and "powerful operational performance" citing pre-tax profit of 1.723 billion euros - 9% more than the consensus. Continuous macroeconomic unpredictability, European economic deterioration, and IT mismanagement in two of the retail units remain major challenges for the bank.
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