Deutsche Bank reports Q3 2024 profit before tax of €2.3 billion, helped by Postbank provision release

Deutsche Bank reported on 23 October 2024 a third-quarter profit before tax of €2.3 billion, up 31% year on year, including a partial release of approximately €440 million in litigation provisions driven by progress on settlements relating to its takeover of Postbank.

Excluding the Postbank release, profit before tax was €1.8 billion, up 6% from €1.7 billion a year earlier and a third-quarter record, the bank said. Post-tax profit rose 39% to €1.7 billion, or 8% to €1.3 billion excluding the release. Net revenues increased 5% to €7.5 billion, with commissions and fee income up 5% to €2.5 billion.

COSTS AND CAPITAL

The cost/income ratio was 63%, or 69% excluding the Postbank release, down from 72% in the third quarter of 2023. Noninterest expenses fell 8% to €4.7 billion, while adjusted costs rose 2% to €5.0 billion, in line with the bank's quarterly guidance. Post-tax return on average tangible shareholders' equity was 10.2%, or 7.6% excluding the release. Provision for credit losses was €494 million. The CET1 capital ratio rose to 13.8%, and the bank said it had sought authorisation for further share repurchases.

By division, Investment Bank net revenues rose 11% to €2.5 billion, Corporate Bank revenues fell 3% to €1.8 billion, Private Bank revenues were essentially flat at €2.3 billion, and Asset Management revenues grew 11% to €660 million.

“In these three months, we made important progress in putting legacy litigation matters behind us, while also producing a record third-quarter profit in our operating business,” said Christian Sewing, chief executive officer. For the first nine months of 2024, profit before tax was €4.7 billion, down 5%, or €5.6 billion, up 13%, excluding the Postbank litigation impact of approximately €900 million.