Results of Deutsche Bank T3 2021 – .

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Results of Deutsche Bank T3 2021 – .


Deutsche Bank on Wednesday announced a decline in revenues for its investment banking unit, but still managed to beat expectations and post its fifth consecutive quarter of profits.
The bank reported a net profit of 194 million euros ($ 225 million) for the three months ending in September. Analysts had estimated a net profit of 135 million euros for the third quarter, according to data from Refinitiv. This is the bank’s longest streak of quarterly earnings since 2012, according to Reuters.

The investment banking unit was once again in the spotlight with lower pre-tax profit compared to last year. Deutsche Bank said fixed-income and currency trading saw its net income decline 12% year-on-year as markets showed less volatility.

“Group level revenues increased by 2%, in investment banking, they decreased by 6%. But again, it’s a very good third quarter, ”James von Moltke, chief financial officer of Deutsche Bank, told Annette Weisbach of CNBC.

Going forward, Deutsche Bank believes that a different interest rate environment, digitization and other factors will continue to support its business. ” [There are] a lot is happening that should benefit our business model over the next decade, ”added von Moltke.

Other highlights from this quarter:

  • Provisions for credit losses amounted to 37 million euros, compared to 53 million euros a year ago.
  • The turnover reached 6 billion euros against 5.9 billion euros a year ago.
  • The CET 1 ratio, a measure of banks’ solvency, stood at 13%, compared to 13.2% at the end of the previous quarter.

The German lender also reiterated its targets for 2022. Its shares are about 32% higher since the start of the year and it had smashed estimates for the second quarter despite a further decline in trading income.

Inflation “more than transitory”

One of the main issues for market players at this point is whether higher consumer prices are here to stay.
Central banks have so far argued that the price pressures are temporary, but many disagree with them.

“It will be more than transient,” von Moltke told CNBC. “There’s good reason to think it’s normalizing over time, because some of these particular disturbances are going through the system. “

“But we are seeing, again, that corporate clients tell us that they see more persistent inflationary pressures in their businesses than we would have liked to see,” he added.

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