Deutsche Bank third quar­ter earn­ings sta­ble

The Pak Banker - - Front Page -


Deutsche Bank, Ger­many’s big­gest bank, notched up on Wed­nes­day a bet­ter-than-expected per­for­mance in the third quar­ter boosted by im­proved mar­ket con­di­tions.

Deutsche Bank said in a state­ment its net profit af­ter mi­nor­ity in­ter­ests rose by 3.0 per cent to €747 mil­lion ($970 mil­lion) in the pe­riod from July to Septem­ber.

That was bet­ter than expected, as an­a­lysts polled by Dow Jones Newswires had been pen­cilling in third-quar­ter net profit of €704 mil­lion.

Un­der­ly­ing earn­ings, as mea­sured by pre-tax profit, were up even more, gain­ing 20 per cent to €1.1 bil­lion. In­vestors were cheered by the num­bers and Deutsche Bank shares were the big­gest gain­ers on the Frankfurt stock ex­change, adding 3.72 per cent while the over­all mar­ket was up only 0.95 per cent. Net rev­enues grew by 18 per cent to €8.7 bil­lion, with rev­enues in cor­po­rate bank­ing and se­cu­ri­ties soar­ing 65 per cent. “We de­liv­ered a strong oper­at­ing re­sult in the third quar­ter, boasted co-chief ex­ec­u­tives Juer­gen Fitschen and An­shu Jain, at­tribut­ing the per­for­mance to “im­proved mar­ket con­di­tions and in­creased mar­ket ac­tiv­ity.” “We ac­cler­ated our de-risk­ing and cap­i­tal for­ma­tion in­tia­tives and, based on our in­creased Core Tier 1 cap­i­tal ra­tio of 10.7 per cent, we are on track to achieve our Basel 3 cap­i­tal am­bi­tions,” they said.

Look­ing ahead, how­ever, the bank ap­peared cau­tious. “In the near term, the macro en­vi­ron­ment re­mains un­cer­tain, and we will main­tain a cau­tious and risk-fo­cused ap­proach,” the two CEOs said. Equinet an­a­lyst Philip Haessler de­scribed the third-quar­ter num­bers as “very good”, while Chris­tian Muschick at Sil­via Quandt noted that “most of the pos­i­tive sur­prises came from the in­vest­ment bank­ing.

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