October 28, 2020

Deutsche Bank reports third-quarter profit of 309 million euros with transformation on track

Sewing Quote on Q3 results

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 charges(1) 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 tax(1) of 1.2 billion euros, up 87% year-on-year
  • Nine-month profit before tax of 2.6 billion euros with adjusted profit before tax(1) 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