Deutsche Bank reports profit before tax of € 1.6 billion, its highest third quarter since 2006
Deutsche Bank today announced its highest third-quarter profit before tax since 2006. Profit before tax was € 1.6 billion for the third quarter of 2022, up nearly threefold compared to € 554 million in the prior year quarter, while post-tax profit was € 1.2 billion, up more than threefold from € 329 million in the third quarter of 2021.
Profit growth reflected 15% year-on-year growth in net revenues together with an 8% reduction in noninterest expenses.
“In the third quarter and first nine months of 2022, we delivered our best profits in more than a decade for both these periods. This underlines the success of our transformation efforts. We have significantly improved Deutsche Bank’s earnings power and we are well on track to meet our 2022 goals”, said Christian Sewing, Chief Executive Officer.
Post-tax profit rises more than threefold year on year to € 1.2 billion
• Post-tax return on tangible equity (RoTE)1 of 8.2%, up from 1.5%
• Cost/income ratio of 72%, down from 89% in the prior year quarter
Net revenues rise 15% year on year to € 6.9 billion with growth in all core businesses
• Corporate Bank up 25% to € 1.6 billion
• Investment Bank up 6% to € 2.4 billion
• Private Bank up 13% to € 2.3 billion
• Asset Management up 1% to € 661 million
Noninterest expenses down 8% year on year to € 5.0 billion
• Adjusted costs ex-transformation charges and bank levies1 up 4% to € 4.8 billion, down 1% year on year if adjusted for FX movements
Core Bank pre-tax profit more than doubles year on year to € 1.8 billion
• Post-tax RoTE1 of 9.9%, up from 3.9% in the prior year quarter
• Cost/income ratio improves to 68%, down from 83% year on year
Capital Release Unit: further de-risking and cost reduction in the quarter
• Leverage exposure reduced from € 29 billion to € 25 billion
• Noninterest expenses down 33% year on year to € 208 million
Common Equity Tier 1 (CET1) ratio of 13.3%, up from 13.0% in the second quarter.
Provision for credit losses was € 350 million in the quarter, up from € 117 million in the prior year quarter. Provision for performing (stage 1 and 2) loans was € 13 million, compared to net releases of € 82 million in the prior year period, reflecting more challenging macroeconomic forecasts, largely offset by a reduction in overlays applied in previous periods and by improved portfolio parameters.
Provision for non-performing (stage 3) loans was € 337 million, up from € 199 million in the prior year quarter, reflecting specific impairment events.