Deutsche Bank tops forecasts, raises capital outlook

Pre-tax profit in the three months to 30 September came to €1.7bn, up 7% year-on-year and the highest for any third quarter since 2006. Net profit came in at €1.03bn, ahead of the consensus forecast of €997m.

Meanwhile net revenues rose 3% to €7.1bn, helped by a 21% improvement in corporate banking and a 3% rise in private banking, offsetting a 4% fall in the investment banking top line and a 10% drop in asset management revenue.

This took net revenues for the first nine months of the year up 6% to €22.2bn. Full-year net revenues are expected to come in at €29bn, up from €27.2bn in 2022.

“These results demonstrate strong and sustained business growth momentum combined with continued cost discipline,” said chief executive Christian Sewing, Officer.

The company said it has now reduced risk weighted assets (RWA) by €10bn, as part of its plan to cut RWA by €15-20bn by 2025. As a result, it is now targeting a RWA reduction of €25-30bn.

Meanwhile, the impact on WRA from the implementation of Basel III regulations – which require banks to hold common equity tier 1 capital of at least 4.5% of RWA – will now be €10-15bn less than originally estimated.

As such, it will be able to free up an additional €3bn in capital through to 2025.

“We have materially improved our capital outlook thanks to our strong results and focused capital efficiency measures. This gives us scope to invest in growing our Global Hausbank model, further improve returns, and increase and accelerate distributions to our shareholders," Sewing said.

The stock was up 7% at €10.16 by 1013 CEST.