The illustration shows the Deutsche Bank Brussels logo, Saturday, March 25, 2023.
Nicolas Maeterlinck | AFP | Getty images
Deutsche Bank On Thursday he exceeded expectations in the final result and said he was on the way to meet the objectives of the whole year, despite the mixed results within his key investment banking unit and earnings against the US dollar.
The net profit attributable to the shareholders reached 1,485 billion euros ($ 1,748 billion) in the second quarter, compared to a forecast of 1.2 billion reuters. It is compared to a loss of 143 million euros in the quarter of June 2024, when the profits were reached by legal provisions linked to the acquisition of postbank by Deutsche Bank.
The income of the lender during the period reached 7,804 billion euros, in line with an average analyst prognosis of 7.76 billion euros produced by LSE.
Deutsche Bank’s financial director, James Von Moltke, told Annette Weisbach of CNBC in a Thursday interview: “The configuration in terms of impulse, discipline around costs, the impulse in business, seems very encouraging and, therefore, we are sure that we are on the way to achieve our goals.”
In all areas, the bank pointed out an impact of the relative force of the euro against the US dollar, with Von Moltke describing it as the “big thing that flows through our numbers.”
Deutsche Bank’s actions jumped more than 9% from 2:45 pm, London time (9:45 am et).
Other outstanding aspects of the second quarter include:
- Benefit before taxes of 2.4 billion euros, 34% more year -on -year, excluding the impact of the dispute after the bank.
- The capital ratio CET 1, a bank solvency measure, was 14.2%, compared to 13.8% in the quarter of March.
- Performance rate after tangible assets (memory) of 10.1%, 11.9% in the previous quarter.
The firm’s central investment banking unit reported a 3% annual increase in revenues to 2.7 billion euros in the quarter of June, but reported mixed results in its subdivisions.
In fixed income and coins, the Bank recorded an increase in “strong” income of 11% driven by greater income of net financing interests and greater volatility and client activity in foreign exchange. But the Deutsche Bank’s original division and advisor, who deals with relations with the main companies and sovereign institutions, recorded a decrease in revenue of the second quarter of 29% to 416 million euros, citing “market uncertainty” and observing a “general postponement of some material transactions in the second half of 2025.”
Corporate bank revenues, meanwhile, immersed in 1% in the year to 1,896 billion euros in the second quarter, with Von Moltke pointing “a little cold” in corporate activity and decision making.
“The growth of loans has been slower than we would like to have seen,” he said, marking the effect of currency translations of the business parts counted on the US dollar. “Otherwise, as I say, it has been a standardization of deposit margins, a little effects. That is … delayed the business in the quarter.”
Euro/dollar
European banks in general face the challenge of navigating a lower interest rate environment, and the European Central Bank recently reduces its 2% key interest rate in June and is expected to maintain that monetary policy during your meeting later in Thursday’s session.
A recent promotion of German and broader European defense expense has been support for profits within the industry and offering new investment opportunities for European lenders. In statements to Annette Weisbach of CNBC at the end of June, the CEO of Deutsche Bank, Christian Sewing, said that “we have clearly been, in particular on the European side, under investing” and we emphasize that the lender has evaluated both the appetite of his portfolio and the resources to advise customers in defense companies.
At the national level, the tumult that seized German politics at the end of last year has calmed down after the rapid elections granted administration to a new ruling coalition under Chancellor Friedrich Merz. Renewed stability has been reflected in the feeling of investors and customers and is also beginning to reverberate in business volumes, according to Von Moltke.
“That is a real change of the last years that this has not been the case,” he said.
But the largest economy in the European Union, and the third largest exporter worldwide, is now mired in commercial uncertainty such as block races of 27 nations to agree on a rate agreement with the president of the United States, Donald Trump, on a deadline of August 1.
“If the tariffs materialize in August, a recession in Germany cannot be ruled out in 2025,” said Bundesbank president Joachim Nagel, last week, according to Reuters.
Von Moltke also acknowledged that US tariffs could raise a “relatively steep” increase in foreign exchange translations and a “wind against” final for European exporters, but said the impact will be “very varied” for each corporate business.
