Deutsche Bank (DBK) Q3 2024 earnings summary

Executive summary

• Strong operating performance in Q3 and the first nine months, with revenues reaching €22.9bn for 9M 2024 and a full-year €30bn target in sight.

• Q3 profit before tax rose 31% year-over-year to €2.3bn, aided by a €440m Postbank litigation provision release; post-tax RoTE at 10.2%.

• Franchise momentum continues across all businesses, with stable asset quality and strong capital position.

• Pre-provision profit up 17% year-over-year, excluding Postbank litigation provision.

Financial highlights

• Q3 group revenues were €7.5bn, up 5% year-over-year; 9M revenues at €22.9bn, up 3%.

• Q3 net profit was €1.7bn, up 39% year-over-year; diluted EPS at €0.81.

• Adjusted costs held at €5bn for Q3; 9M adjusted costs at €15.1bn.

• CET1 ratio at 13.8%, up 30bps sequentially; leverage ratio at 4.6%.

• Liquidity coverage ratio at 135%; net stable funding ratio at 122%.

Outlook and guidance

• Confident in achieving €30bn revenue for 2024 and €32bn for 2025; 2025 targets include >10% post-tax RoTE, 5.5–6.5% revenue CAGR, <62.5% cost/income ratio, ~13% CET1 ratio, and 50% payout ratio.

• Provision for credit losses for 2024 guided at ~€1.8bn, expected to normalize in 2025.

• Adjusted costs for 2024 expected flat at €5bn per quarter; noninterest expenses targeted at ~€20bn for 2025.

• Shareholder distributions expected to exceed €8bn for 2021–2025; next share buyback pending ECB approval.