Net profit stands at €1.485 billion; Bank management confirms full-year targets
Deutsche Bank reported stronger-than-expected second-quarter net profit of €1.485 billion ($1.748 billion), surpassing the Reuters analyst forecast of €1.2 billion.
This performance positions the bank to meet its full-year targets, according to CFO James von Moltke, despite mixed results in its core investment banking unit and headwinds from a stronger euro.
Key Q2 2025 Highlights:
Profitability: Net profit attributable to shareholders reached €1.485 billion. Pre-tax profit, excluding Postbank litigation effects, rose 34% year-on-year to €2.4 billion.
Revenue: Group revenue totalled €7.804 billion, aligning closely with the LSEG analyst consensus of €7.76 billion.
Investment Banking (Mixed Performance):
- Overall revenue in the core investment bank rose 3% year-on-year to €2.7 billion.
- Fixed Income & Currencies (FIC): Delivered a strong 11% revenue increase, driven by higher financing net interest income and increased FX volatility/client activity.
- Origination & Advisory (O&A): Revenue fell significantly by 29% to €416 million, attributed to “market uncertainty” causing clients to postpone major transactions into H2 2025.
Corporate Banking: Revenue dipped slightly by 1% year-on-year to €1.896 billion. Von Moltke noted “a bit of a chill” in corporate activity and sluggish loan growth, partly due to adverse USD-EUR currency translation.
Capital & Returns: The CET1 capital ratio strengthened to 14.2% (up from 13.8% in Q1). Post-tax Return on Tangible Equity (ROTE) was 10.1% (down from 11.9% in Q1).
Currency Impact: The bank highlighted the negative translation effect of the euro’s relative strength against the US dollar across its businesses.
CFO James von Moltke expressed confidence, stating the bank’s momentum and cost discipline provide an “encouraging” setup to achieve annual goals. Reflecting this optimism, Deutsche Bank shares surged 5.76% in early London trading, approaching ten-year highs.