Deutsche Bank continued its earnings trajectory in the third quarter with a billion-euro profit. Shareholders received a surplus of nearly 1.6 billion euros, a figure approaching the level seen in the 2007 financial year. The results surpassed expectations, bolstered by strong performance in the investment bank alongside the retail and corporate client segments. Chief Executive Officer Christian Sewing stated that Germany's largest financial institution is well on track to meet its annual targets and suggested a potential upward revision.
The bank's shares rose by around 3 percent to 29.73 euros in morning trading, making it the top gainer on the Dax index, though still trading lower than at the turn of the year. Analyst Kian Abouhossein from JPMorgan noted a positive trajectory for the Frankfurt-based institution, highlighting a successful turnaround in the corporate banking business. RBC analyst Anke Reingen praised the investment bank division, noting that it met expectations unlike counterparts at some other financial institutions.
Bank leadership expressed confidence regarding the results. Sewing noted satisfaction with achieving a strong quarterly profit for the third consecutive period, positioning the bank favorably to reach its 2026 objectives. Total revenues for the full year could now exceed the previously targeted threshold of roughly 33 billion euros.
Similar optimism applies to the profitability targets for the upcoming years. The results reinforced the executive board's confidence in potentially exceeding the return on equity target of over 13 percent for 2028. Sewing indicated that the specifics regarding these ambitions and the roadmap will be detailed in January when the full-year results are presented, as outlined in a communication to employees.
In the third quarter, Deutsche Bank's pre-tax profit increased by eight percent compared to the same period in the previous year, reaching over 2.6 billion euros, contrasting with analyst expectations of a decline. After-tax profit stood at approximately 1.9 billion euros, representing a two percent increase year-on-year. Following the deduction of minority interests and coupons on Additional Tier 1 capital instruments, the net income attributable to shareholders amounted to nearly 1.6 billion euros.
The investment bank provided the largest contribution to the Dax-listed group's performance between July and September, generating a pre-tax profit of nearly 1.1 billion euros. This marked a twelve percent increase from the previous year and exceeded average analyst forecasts. Earlier in the year, robust activity in securities, currencies, and advisory services for initial public offerings had already generated substantial billion-euro profits.
Both the corporate bank and the private bank also increased their pre-tax profits compared to the prior-year period. Conversely, the independently listed fund subsidiary DWS fell short of expectations as revenues and profits did not grow as anticipated. However, DWS funds attracted record net inflows of nearly 31 billion euros from investors during the third quarter.
Following the first nine months of the year, Deutsche Bank reports a cumulative pre-tax profit of roughly 8.4 billion euros, with net income attributable to shareholders exceeding 5.1 billion euros.
