Deutsche Bank tops Q2 estimates with strongest profit since 2007; shares jump

Published 24/07/2025, 07:34
Updated 24/07/2025, 11:48
© Reuters.

Investing.com -- Deutsche Bank (ETR:DBKGn) reaffirmed its full-year guidance after reporting stronger-than-expected second-quarter earnings amid solid revenue growth across client-facing businesses despite a volatile backdrop.

The bank’s shares popped 7% in European trading by 10:30 GMT. 

Germany’s largest bank by assets posted an after-tax profit of €1.73 billion for the three months ending June 30, a sharp rise from just €52 million a year earlier, when it absorbed legal costs tied to its Postbank acquisition. Analysts had expected a profit of €1.45 billion, according to a company-compiled consensus.

Net profit attributable to shareholders came in at €1.485 billion, reversing a year-ago loss of €143 million and surpassing expectations for a €1.2 billion profit.

“We are very happy to have delivered our highest second-quarter and first-half year profits since 2007. This puts us on track to meet our 2025 targets," said Deutsche Bank CEO  Christian Sewing.

Group revenue rose 3% year-on-year to €7.80 billion, slightly ahead of the €7.665 billion consensus. Gains were led by the asset management division and investment banking operations.

Fixed-income and currency trading revenue rose 11%, outperforming forecasts for a 3.1% increase.

Bank of America analysts said Deutsche Bank delivered "strong results," adding that they "bode well for the upcoming capital markets day (CMD)."

"DBK remains one of the cheapest banks in Europe, now with more concrete signs the self-help story is working. We expect positive reaction today," analyst Tarik El Mejjad wrote. 

However, revenue in origination and advisory fell 29% after a strong showing last year, a steeper drop than the 18% decline analysts had projected. The division recently underwent leadership changes.

The bank revised its outlook for the corporate bank, now expecting revenue to be “essentially flat” versus the earlier forecast of “slightly higher.”

Return on average tangible shareholders’ equity reached 10.1% in the quarter, meeting the bank’s annual goal and exceeding the 8.1% estimate from analysts. 

Looking ahead, the bank continues to forecast revenues of around €32 billion in 2025. 

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