Deutsche Bank AG (NYSE:DB) is set to accelerate shareholder distributions, bolstered by an uptick in corporate bank profits and deposit inflows, which have helped counterbalance a weaker Q3 trading performance. The bank reported a 3% year-on-year revenue growth to €7.13 billion, aligning with analysts' predictions and setting the bank on track for a €29 billion annual turnover, the upper limit of its forecast range.
The bank's improved asset allocation and less severe regulatory impacts than initially anticipated could free an extra €3 billion in capital. CEO Christian Sewing highlighted that this improved capital outlook enables the bank to invest in its Global Hausbank model, improve returns, and expedite shareholder distributions. Sewing has committed to boosting revenue while managing costs, aiming to return €8 billion to shareholders over the next five years.
Despite challenges such as high inflation, necessary investments for control improvements, and a problematic IT project at its retail unit, Deutsche Bank's performance has been commendable. In contrast with Barclays Plc's 26% decline, Deutsche Bank only saw a 12% reduction in Q3 fixed-income trading unit revenue.
In recent developments, Deutsche Bank acquired UK corporate broker Numis to enhance its underwriting and deals advisory business. Claudio de Sanctis, head of the private bank, is restructuring the German retail operations to cut costs and stimulate growth. However, customer complaints arising from an IT systems migration necessitate increased staff allocation.
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