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Deutsche Bank reported record third-quarter profits as bond and currency trading revenues surged at Germany’s biggest bank.
Net profit attributable to shareholders in the three months to September climbed 7 per cent from a year earlier to €1.56bn, Deutsche said on Wednesday, as the bank reaped the benefits of higher volatility across markets.
Chief executive Christian Sewing said Deutsche was “on track” to meet its 2025 financial targets, adding that the bank had built “firm foundations for the next phase of our strategy”.
Pre-tax profit at the investment banking division climbed 19 per cent to €965mn, helped by growth in bonds, foreign exchange and credit trading, although the figure was below analyst forecasts of €1.02bn as higher loan losses offset stronger revenues.
Deutsche said these impairments were unrelated to “recent high-profile cases” such as the collapses of First Brands Group and Tricolor, which have raised concerns about stress in private credit markets.
Advisory revenues were down 3 per cent, in line with other European lenders such as BNP, as dealmaking in Europe continues to lag behind the US market.
The corporate banking arm was the only division with lower revenues in the third quarter, down 1 per cent year on year, reflecting weaker net interest income and the depreciation of the dollar against the euro.
Deutsche Bank shares rose as much as 3 per cent on Wednesday morning. The stock has gained more than 90 per cent over the past 12 months as investors believe it is set to benefit from German government plans to increase spending in infrastructure and defence.
However, finance chief James von Moltke cautioned that “some amount of time lag” was likely before such measures translated into structural growth in Europe.
The results come as Deutsche prepares to present a new midterm strategy to investors on November 17.
