More than a billion: Deutsche Bank with a big jump in profits

Deutsche Bank has increased its profit almost sixfold within a year. The bottom line was that Germany’s largest money house got stuck with 1.1 billion euros.

The deteriorating economic situation did not affect Deutsche Bank. The money house listed in the DAX surprisingly achieved another billion in profit in the third quarter. It was the ninth quarterly profit in a row.

Deutsche Bank exceeds expectations

The bottom line is that the shareholders made a profit of a good 1.1 billion euros. This is almost six times the previous year’s profit (plus 475 percent). Deutsche Bank thus clearly exceeded the market consensus. On average, analysts had only expected a profit of 835 million euros.

CEO Christian Sewing speaks of an “outstanding result” and also refers to the pre-tax profit of 1.6 billion euros. “Not only is that nearly three times the same period last year. It is also the best third-quarter result since 2006. The nine-month profit, which was 4.8 billion euros before tax, is the highest in eleven years.” , according to Sewing.

Sewing sticks to return target

According to these results, the CEO sees his institute “on track” to achieve the goals for the current year. Sewing continues to expect a return of eight percent on tangible equity.

“After three quarters we are even slightly above this value. So we can actually achieve what many observers had considered unattainable until well into the current year,” emphasized the manager. In the first nine months, the return on tangible equity was 8.1 percent. A year earlier it had only reached 4.8 percent.

Deutsche Bank benefits from rising interest rates

Sewing’s optimism is not least due to the bubbling income. Total income increased by 15 percent to 6.9 billion euros. The more restrictive monetary policy of the central banks – in view of record high inflation rates – also plays into the hands of Deutsche Bank.

Thanks to higher interest rates, the manager now thinks it’s possible that total earnings this year will exceed the previous forecast of 26-27 billion euros.

In the meantime, the bank reacted to the increased risk of loan defaults with a risk provision of 350 million euros – three times as much as in the same quarter of the previous year, when the risk provision was still 117 million euros.

Deutsche Bank shares jump

The quarterly results of Deutsche Bank are well received on the stock exchange. On the Tradegate trading platform, the DAX stock rose by almost three percent to EUR 9.62. Deutsche Bank shareholders can indeed use good news. The share is in a downward trend and has lost almost 30 percent of its value since the beginning of the year alone.