Deutsche Bank Reports Net Loss of EUR 143 Million in Q2 2024 on EUR 1.3 Billion Postbank Provision

Deutsche Bank reported a net loss attributable to shareholders of EUR 143 million for the second quarter of 2024, snapping a 15-quarter unbroken run of profitability after a EUR 1.3 billion provision booked in relation to litigation arising from the Postbank takeover. The loss compares to a net profit of EUR 763 million in the same quarter a year earlier.

Stripping out the Postbank provision, Deutsche Bank's underlying business delivered a pre-tax profit of EUR 1.7 billion in the second quarter, compared with EUR 1.4 billion a year earlier.

POSTBANK PROVISION, REVENUES AND CAPITAL

The EUR 1.3 billion provision relates to ongoing litigation connected to Deutsche Bank's acquisition of Postbank, a transaction that has generated a long-running series of legal disputes with former shareholders. The bank set aside the provision in the second quarter following developments in the litigation that required it to reflect a higher potential liability in its accounts.

Group revenues grew 2% year-on-year to EUR 7.6 billion in the second quarter. Growth was driven by the Investment Bank (up 10%) and Asset Management (up 7%), while Corporate Bank revenues were essentially flat and Private Bank revenues fell 3%.

The bank reported a liquidity coverage ratio of 136% and a net stable funding ratio of 122%, both above regulatory requirements. The CET1 capital ratio rose to 13.5%.

CHIEF EXECUTIVE'S COMMENT

Deutsche Bank's Q2 2024 results were published in a media release on 24 July 2024. Chief Executive Christian Sewing said the results kept the bank well on track towards meeting its 2025 goals and its distribution commitments to shareholders, despite the headline loss recorded in the quarter.