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Investing.com -- Deutsche Bank AG (ETR:DBKGn) shares were little changed on Wednesday after the lender reported third-quarter earnings that came in 16 % above consensus, lifted by stronger Investment Banking revenue and lower costs.
The bank posted a profit before tax of €2.4 billion, up 8 % from a year earlier, marking its highest third-quarter result on record.
Net profit rose 9 % to €1.8 billion, and total net revenues increased 7 % to €8 billion, according to its quarterly results.
BofA Research in a note said, “DBK delivered a net income of €1,773mn, which was 5% higher QoQ (-50% YoY but vs large one-offs) and came 12% above BofAe and 16% above company-compiled cons.”
It added that “Revenues came at €8,043mn, which was +3.1% QoQ (7.2% YoY) and came 3% vs BofAe and cons. The beat was mainly driven by the IB which came strong at +18% YoY and beat cons by 7% predominantly from the FIC thanks to Macro product, Credit and financing.”
The bank said its post-tax return on tangible equity reached 10.7 %, meeting its full-year target ahead of schedule.
For the first nine months of 2025, Deutsche Bank reported a profit before tax of €7.7 billion, up 64 % from €4.7 billion in the prior-year period.
Profit attributable to shareholders rose 86 % to €4.8 billion, and total net revenues were €24.4 billion, compared with €22.9 billion a year earlier. Noninterest expenses fell 8 % to €15.4 billion, bringing the cost/income ratio to 63%.
“Our profitability in the first nine months underpins the path to deliver above 10 % return on tangible equity target for full-year 2025,” Deutsche Bank said in its earnings report.
The Investment Bank reported a profit before tax of €965 million, up 19 %, supported by an 18 % increase in net revenues to €3 billion. Fixed Income & Currencies revenue rose 19 % to €2.5 billion, and Origination & Advisory grew 27 % to €502 million.
The Corporate Bank’s pre-tax profit increased 23 % to €670 million, while the Private Bank’s pre-tax profit more than doubled to €683 million. Asset Management’s net revenues rose 11 % to €734 million, with assets under management reaching €1.05 trillion.
Provision for credit losses totaled €417 million in the quarter, down 16 % year on year. BofA said “asset quality remained solid with a CoR at 35bp.” For the nine months, provisions declined 7 % to €1.3 billion.
The bank’s Common Equity Tier 1 capital ratio stood at 14.5 %, compared with 13.8 % a year earlier.
“DBK’s CET1 ratio came at 14.5 %, a 25bp beat to consensus,” Bank of America said. Deutsche Bank completed €1 billion in share repurchases in 2025 and distributed €2.3 billion in total capital, including dividends, representing a 50 % increase from 2024.
Bank of America reiterated its “Buy” rating on Deutsche Bank, saying, “we see DBK as an attractive turnaround story trading at 7x P/E, 0.9x P/TBV vs c.11.5% ROTE in 2026E.”