Deutsche Bank reported a net profit of 1.031 billion euros ($1.06 billion) for Q3, surpassing London Stock Exchange Group (LON:LSEG) data predictions, despite enduring complications in its investment arm and an 8% annual decline. The net profit represented a 35% surge from the preceding quarter, marking Deutsche Bank's thirteenth unbroken profitable quarter since their extensive restructuring in 2019.
The bank's corporate banking division showcased strong growth with a 21% year-on-year revenue surge to 1.89 billion euros. However, the investment arm saw a downturn with net revenues dropping 4% year-on-year to 2.27 billion and a cumulative decrease of 12% in the first three quarters to 7.3 billion.
Deutsche Bank's Q3 total revenues hit 7.13 billion euros, marking an increase from Q3 2022's figure of 6.92 billion, according to NBC Philadelphia newsletters.
In the same period last year, Deutsche Bank registered a net profit of 1.115 billion euros, fueled by elevated interest rates and market instability that positively impacted its fixed income and currencies trading business.
Impacted by rising interest rates, Deutsche Bank experienced a 7% rise in taxable earnings to E1.7bn, marking the best Q3 performance since 2006. Despite a year-on-year drop of 3%, the after-tax net profit was E1.2bn, outdoing the E1.1bn consensus.
The bank's CET1 ratio, a crucial solvency measure, exceeded market predictions at 13.9%, higher than the previous quarter's 13.8% and a forecasted 13.4%. Deutsche Bank plans to free up roughly E3bn of extra capital by 2025.
Following these results, Deutsche Bank's shares on the Frankfurt Stock Exchange saw a surge of over 6%, making it the standout performer in the DAX index.
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