Deutsche Bank’s City of London offices in London, UK, on July 2, 2024. Deutsche Bank is a German multinational investment banking and financial services company headquartered in Frankfurt.
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Deutsche Bank The company ended its 15th consecutive quarter of profits on Wednesday with a smaller-than-expected loss as it set aside provisions for ongoing litigation at its Postal Bank unit.
Net loss attributable to shareholders was 143 million euros ($155.1 million), while a survey of LSEG analysts had forecast a loss of 145 million euros.
Germany’s largest bank had previously said the quarter would be hit by Postbank provisions, which it confirmed on Wednesday would amount to 1.3 billion euros. A long-running lawsuit filed by investors accuses Deutsche Bank of underpaying for the retail banking giant in 2010.
The bank reported second-quarter net income growth of 2% to 7.6 billion euros, while efficiency savings amounted to 1.5 billion euros.
Revenue reporting varies across the business. Its investment banking unit has been an area of strength recently, rising 10% year-on-year to 2.6 billion euros, but its fixed income and currency units fell 3% to 2.1 billion euros. Corporate banking revenue was almost flat at €1.9 billion.
Other highlights include:
- Profit before tax excluding Postbank provisions was 1.7 billion euros, up from 1.4 billion euros in the second quarter of 2023.
- Provisions for credit losses were 476 million euros, up from 401 million euros a year ago.
- The CET1 capital ratio, a measure of bank solvency, rose to 13.5% from 13.4% in the first quarter of this year.
Deutsche Bank Chief Executive Christian Sewing said in a statement on Wednesday that the bank remained committed to its distribution to shareholders, having previously said it amounted to more than Repurchase shares of 8 billion euros during the 2021-2025 fiscal year. Earlier this month, the bank said allocations to date totaled 3.3 billion euros.
Chief Financial Officer James von Moltke told CNBC’s Caroline Roth that Deutsche Bank saw several positive drivers in the second half, including net interest income, which fell 2% in the second quarter from corporate banking, according to Wednesday’s earnings report.
“Earlier in the year, we had called for a decline in net interest income relative to (20)23, and we actually thought the bank account business was probably going to be stable and about the same level as last year, which was actually very encouraging, reflecting the financing Spreads have improved on both lower-cost deposits and loans, but loan growth is still slower than we would have liked to see, but the overall picture is encouraging,” von Moltke said.
“We’re seeing the momentum we wanted to see in financial markets and corporate finance,” he added, noting that revenue from its origination and advisory businesses doubled year over year.
The second-quarter results maintained the bank’s recent trend of better-than-expected profits. Come back in Aprilthe bank reported a 10% rise in profit, the best quarterly performance by this metric since 2013.
This day is also a busy day for European bank financial reports. Among them, the financial report of Italian bank UniCredit Bank maintain a Profitable for 14 consecutive quarters as spanish Santander Reportedly 20% Net profit leap.
