Deutsche Bank beats estimates with 7% increase in Q3 net profit

Reuters2021-10-27

FRANKFURT, Oct 27 (Reuters) - Deutsche Bank posted a better-than-expected third-quarter 7% climb in profit on Wednesday, its fifth straight quarter in the black despite a decline in investment banking revenue.

The profit, while a fraction of that of major U.S. competitors, is a victory for Chief Executive Office Christian Sewing, who in 2019 embarked on a 9 billion euro overhaul after a series of regulatory failings and billions in losses logged over the past decade.

Net profit attributable to shareholders was 194 million euros ($225 million), compared with profit of 182 million euros a year earlier and analysts' expectations for profit of 135 million euros.

The fifth consecutive quarter of profit represents its longest streak in the black since 2012.

Reuters Graphics

"We are focused on driving efficiencies while maintaining strong controls, and we are confident of achieving Deutsche Bank's 2022 targets," Sewing said.

Part of that restructuring has involved reducing dependence on the at-times volatile income of the investment bank, but the division, as in recent quarters, was again the bank's biggest revenue generator.

Although revenue at the division declined 6% in the third quarter from a year earlier as a pandemic trading boom eased, it is on pace to match last year's, Deutsche Bank said. That would be a significant improvement over 2019.

The investment bank's advisory business benefited from a global dealmaking boom, with revenue surging 82% to 118 million euros.

($1 = 0.8593 euros)

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