Deutsche Bank reported an eight percent increase in pre-tax profit for the third quarter to reach 2.6 billion euros, according to an announcement. Net profit came to approximately 1.9 billion euros, marking a two percent rise compared to the same period of the previous year. Chief Executive Christian Sewing noted that the institution achieved a record profit for the third consecutive quarter.
During the first nine months, profit after tax climbed by seven percent to 5.9 billion euros, while pre-tax profit increased by eight percent to 8.4 billion euros. Revenues for the third quarter advanced by four percent to 8.3 billion euros, while costs remained largely unchanged at 5.2 billion euros. This performance improved the cost-income ratio from 64.4 percent to 62.4 percent.
The investment bank remained the primary profit contributor, with its pre-tax profit rising by twelve percent year-on-year to just under 1.1 billion euros. Demand remained strong, particularly in fixed-income and currencies trading as well as corporate financing. Revenues in bond and foreign exchange trading reached 2.4 billion euros, remaining slightly below the prior-year figure.
The corporate bank also recorded positive development, generating record revenues and increasing its loan volume by ten billion euros year-on-year, alongside a 41 billion euro increase in customer deposits.
Conversely, the bank set aside higher provisions for potential loan defaults. Risk provisions rose by nine percent compared to the previous quarter to reach 501 million euros, driven by risks in commercial real estate and a single corporate credit exposure in Asia.
The wealth management division registered substantial growth as well. Revenues in this segment grew by ten percent compared to the prior-year quarter, while total client assets in the private bank increased by 75 billion euros since the beginning of the year to reach 865 billion euros. In the third quarter alone, net inflows totaled 17 billion euros, with eleven billion euros directed into investment products. Since the start of the year, the bank hired 180 new client advisors in wealth management. Combined with asset management, net inflows reached 103 billion euros in the first nine months, pushing total managed assets across both business areas above two trillion euros.
Following these results, Deutsche Bank expects to exceed its previous revenue target of roughly 33 billion euros for 2026. The return on tangible equity stood at 10.6 percent for the third quarter and reached 11.5 percent for the first nine months, with a target of exceeding 13 percent by 2028. The common equity Tier 1 ratio was 14.0 percent at the end of September. The bank also repurchased shares totaling 1.5 billion euros during the current year.
Meanwhile, the publicly listed fund subsidiary DWS recorded its highest-ever quarterly net inflows at 30.9 billion euros in the third quarter. For the first nine months, inflows summed to 66.7 billion euros, exceeding the previous record for a full financial year since its IPO. Assets under management reached a peak of 1.221 trillion euros at the end of September, representing a 136 billion euro increase since the end of 2025. Passive investment products drove this growth, led by 15.8 billion euros in net inflows, particularly into Xtrackers exchange-traded products, alongside 13.9 billion euros into money market products. Traditional active fund management saw inflows and outflows balance out, as equity funds lost one billion euros net while systematic and quantitative strategies attracted 1.1 billion euros.
Despite client asset growth, DWS revenues rose by four percent year-on-year to 784 million euros, pre-tax profit increased by two percent to 325 million euros, and net profit grew by five percent to 230 million euros. Revenues and earnings missed average analyst expectations, and the cost-income ratio deteriorated from 57.7 percent to 58.6 percent. DWS Chief Executive Stefan Hoops highlighted the strong net inflows achieved during the quarter. For the full year, the fund company maintains its target to increase earnings per share by ten to 15 percent, after recording a 16 percent increase in the first nine months.
Additionally, DWS announced a brand transition starting in November to gradually introduce a new international umbrella brand named Deutsche Asset Management, while retaining existing product brands such as DWS for European active retail business, Xtrackers for ETFs and passive investments, and RREEF for American real estate. The implementation is scheduled for completion by March 2027, with the name of the listed parent company, DWS Group, remaining unchanged for now.
