Deutsche Bank (DBK) third-quarter earnings | Real Time Headlines

Deutsche Bank beat expectations on Wednesday as it returned to profit in the three months to September, after ending a 15th straight quarterly streak of profits in the second quarter.

Third-quarter net profit for shareholders was 1.461 billion euros ($1.58 billion), compared with expectations of 1.047 billion euros in an LSEG analyst survey.

Revenue reached 7.5 billion euros, compared with LSEG analysts’ forecast of 7.338 billion euros.

Germany’s largest bank loses 143 million euros Season 2announced at the time that it would not launch a second share buyback program this year and take into account provisions for long-running litigation over its acquisition of the Post Bank unit. About 60% of the plaintiffs in the lawsuit claimed that Deutsche Bank did not pay enough for the purchase, and since then settle down August with Deutsche Bank.

European banks, whose performance has been bolstered by heavy share buybacks and dividends in recent years, now face pressure to deliver earnings growth in a falling interest rate environment to keep pace with the profitability of their U.S. peers.

McKinsey analysts warned in the consultancy’s Annual Review of Global Banking 2024: “In retrospect, while the industry has reduced costs and maintained high credit quality, the improvement in returns since 2021 appears to be mainly due to interest rates rise.

Deutsche Bank launched comprehensive cost savings drive The bank plans to reduce its workforce by 3,500 in 2025, including 800 job cuts announced last year.

Market participants are conducting a heated investigation into the wider banking sector after Deutsche Bank abandoned the prospect of a merger with domestic rival Commerzbank, which now faces a potential takeover by UniCredit.

Other European banks are also due to report third-quarter earnings in the coming days, with Barclays on Thursday and Swiss giant UBS next week.

This breaking news story is being updated.