Deutsche Bank beats estimates, Q3 net more than doubles; revenue falls 7%

Lloyd Doyle
October 26, 2017

German lender Deutsche Bank reported a strong increase in third-quarter net profit Thursday, beating analyst expectations despite a drop in investment bank revenue.

The bank said noninterest expenses declined 14% year-over-year to EUR5.66 billion.

The bank's results for the three months to September 30 showed group revenues of €6.7bn, down 10% year-on-year, but profits more than doubled from €278m to €649m.

The private and commercial bank reported revenues up by 3.0 per cent, while the asset management unit's results were stable compared with the same period past year. Rates, FX and emerging markets revenues were also lower, the bank added. The bank saw less income because of low interest rates, which squeezes lending margins, and as calmer financial markets led clients to trade less.

Commenting on the results, the CEO of the company John Cryan said: "While the revenue environment remained challenging, we have made significant progress on our key initiatives such as the planned merger of Deutsche Bank and Postbank in Germany as well as the preparation for the IPO of our asset management business". In a separate presentation, the bank said credit revenues were "significantly lower due to a less active environment and less favorable trading conditions". Revenues in the private and commercial bank were up 3%, to EUR2.6 billion.

The German giant's asset management unit posted revenues of €628 million, a figure that is more or less flat year-on-year. The bank said that plan is on track.

Those moves come amid a prolonged restructuring period and strategic decisions seen by analysts and investors as still unproven.

Deutsche Bank has been hampered with weaker earnings and legal troubles in recent years.

Other reports by Iphone Fresh

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