Friday, August 12

Deutsche Bank pulverizes forecasts with its quarterly profit

Deutsche Bank closed the third quarter of the year with a profit of 194 million euros, 6.5 percent more than a year ago, and beat the forecasts of the market consensus, which calculated earnings for the period of 135 million euros. A year earlier, the bank earned 182 million.

With these figures, the first commercial bank in Germany chains five consecutive quarters of earnings, the best quarterly streak since 2012. In addition, the entity shot 29 times the accumulated profit during the first nine months of the year.

Deutsche Bank earned 1,794 million euros from January to September, up from 62 million a year earlier, despite increasing restructuring costs. The figure is explained by the fall in provisions.

Provisions drop 83 percent

The provisions intended to cover credit defaults were reduced year-on-year to 261 million euros, 83 percent compared to a year earlier.

Revenues increased 5 percent at the end of September, up to 19,150 million euros. Turnover in the third quarter increased 1.7 percent, to 6,040 million.

Asset management left income of 1,919 million euros, 18 percent more, with an increase in private investment banking of 4 percent, to 7,718 million. The corporate banking business fell 3 percent, to 3,798 million and that of private banking grew 1 percent, to 6,195 million euros.

The capital ratio, stable

Regarding restructuring costs, mainly related to technological migrations from IT services to the cloud, they totaled 450 million euros. With everything, the capital ratio that measures solvency fell to 13 percent, up from 13.3 percent a year ago, but it continues above the level required by the ECB.

The CEO of the bank, Christian Sewing, pointed out that during the last three months it was demonstrated that “lthe operational strength of the business, the strong income and the increase in profits despite the transformation costs ”. Furthermore, he emphasized the fact that they have already exceeded their sustainability target for the year.