Deutsche Bank (DBK) Q2 2024 earnings summary

Executive summary

• H1 2024 revenues reached €15.4bn, on track for €30bn full-year, with strong franchise momentum and double-digit fee income growth across all business segments.

• Adjusted costs were €5.0bn per quarter, in line with efficiency targets and guidance, delivering €1.5bn in operational savings to date.

• Reported profitability was significantly impacted by a €1.3bn Postbank litigation provision, but underlying RoTE improved to 7.8% in H1, and cost-income ratio improved to 69% excluding litigation.

• CET1 ratio remained strong at 13.5%, with robust capital and liquidity metrics despite absorbing legacy matters.

• Strong progress on efficiency, capital optimization, and diversified business mix, with continued shareholder distributions.

Financial highlights

• Q2 2024 revenues were €7.6bn, up 2% year-over-year, driven by noninterest income and fee growth.

• Non-interest expenses rose 20% year-over-year to €6.7bn, mainly due to litigation charges; adjusted costs flat at €5.0bn.

• Q2 profit before tax was €411m (or €1.7bn excluding Postbank litigation); net profit was €52m, with a high tax rate due to non-deductible litigation charges.

• Diluted EPS was -€0.28 in Q2; tangible book value per share increased 6% year-over-year to €28.65.

• CET1 ratio at 13.5%, leverage ratio at 4.6%, liquidity coverage ratio at 136%, and net stable funding ratio at 122%.

Outlook and guidance

• Full-year 2024 revenue guidance reaffirmed at €30bn, with adjusted costs around €20bn and provision for credit losses now expected slightly above 30bps of average loans.

• Focused on achieving 2025 targets: revenues of €32bn, RoTE above 10%, CIR below 62.5%, and CET1 ratio around 13%.

• Distribution target of over €8bn for 2021–2025 remains, with cumulative distributions at €3.3bn since 2022 and plans to increase dividends and buybacks.