Strongest quarterly profit of the current year
- Profit of 309 million euros with profit before tax of 482 million euros
- Nine-month profit of 435 million euros and profit before tax of 846 million euros
Group net revenues grew 13% year-on-year to 5.9 billion euros in the quarter
- Core Bank net revenues up 9% year-on-year to 6.0 billion euros
- Investment Bank net revenues of 2.4 billion euros, up 43%
- Private Bank stable as volume growth offsets interest rate headwinds
- Corporate Bank down 5%, 2% ex-FX translation effects, as deposit repricing partly offsets interest rate headwinds
- Asset Management net revenues up 4% with net inflows of 11 billion euros
11th consecutive quarter of progress on costs
- Noninterest expenses down 10% year-on-year to 5.2 billion euros
- 4.7 billion euros in adjusted costs ex-transformation charges¹ excluding reimbursable expenses related to Prime Finance, down 10% year-on-year
- On track to meet full-year 2020 target of 19.5 billion euros
Core Bank quarterly profit before tax of 909 million euros
- Adjusted profit before tax¹ of 1.2 billion euros, up 87% year-on-year
- Nine-month profit before tax of 2.6 billion euros with adjusted profit before tax¹ up 40% to 3.2 billion euros
Capital Release Unit: further progress on asset reduction in the quarter
- Risk weighted assets down by 3 billion euros to 39 billion euros
Continued disciplined management of capital, risk and balance sheet
- Common Equity Tier 1 capital ratio stable at 13.3%, 285 basis points above regulatory requirements
- Liquidity reserves of 253 billion euros, LCR surplus of 76 billion euros
- Provision for credit losses of 273 million euros, 25 basis points of loans (bps) in the third quarter and 47 bps annualised in first nine months of 2020
- Reaffirmed guidance of full-year provision for credit losses of 35-45 bps
¹ For a description of this and other non-GAAP financial measures, see ‘Use of non-GAAP financial measures’ on pp 16-17
Christian Sewing, Chief Executive officer, said: “In the fifth quarter of our transformation, we not only demonstrated continued cost discipline, but also our ability to gain market share. Our more focused business model is paying off and we see a substantial part of our revenue growth as sustainable. Our balance sheet strength and high quality risk management enable us both to support clients in challenging times and to take advantage of new business opportunities.”
Read the full media release in the downloadable PDF
About Deutsche Bank
Deutsche Bank provides retail and private banking, corporate and transaction banking, lending, asset and wealth management products and services as well as focused investment banking to private individuals, small and medium-sized companies, corporations, governments and institutional investors. Deutsche Bank is the leading bank in Germany with strong European roots and a global network.
This release contains forward-looking statements. Forward-looking statements are statements that are not historical facts; they include statements about our beliefs and expectations and the assumptions underlying them. These statements are based on the plans, estimates and projections currently available to the management of Deutsche Bank.
Forward-looking statements therefore speak only as of the date they are made, and we undertake no obligation to update any of them in light of new information or future events. By their very nature, forward-looking statements involve risks and uncertainties. A number of important factors could therefore cause actual results to differ materially from those contained in any forward-looking statement.
Such factors include the conditions in the financial markets in Germany, in Europe, in the United States and elsewhere from which Deutsche Bank derives a substantial portion of its revenues and in which the bank holds a substantial portion of its assets, the development of asset prices and market volatility, potential defaults of borrowers or trading counterparties, the implementation of strategic initiatives of the bank, the reliability of the bank’s risk management policies, procedures and methods, and other risks referenced in the bank’s filings with the U.S. Securities and Exchange Commission.
Such factors are described in detail in the bank’s SEC Form 20-F of 20 March 2020 under the heading “Risk Factors”. Copies of this document are readily available upon request or can be downloaded from www.db.com/ir.