The illustration shows the logo of Deutsche Bank Brussels on Saturday, March 25, 2023.
Nicolas Maeterlinck | AFP | Getty pictures
German bank On Thursday, expectations in the end result exceeded the fact that it was on the right path to reach the full year, despite mixed results in the most important investment banking unit and the euro profits against the US dollar.
The net profit, which is due to the shareholders, reached 1.485 billion euros (1.748 billion US dollars) in the second quarter, compared to a forecast of 1.2 billion dollars from Reuters. It is comparable in June 2024 with a loss of 143 million euros, when the income was made by legal provisions in connection with the transfer of Postbank by Deutsche Bank.
The lender's turnover in the period was 7.804 billion euros, corresponding to a medium analyst forecast of 7.76 billion euros, which was produced by LSEG.
James von Moltke, Chief Financial of Deutsche Bank, said in an interview by CNBC in Annette Weisbach from CNBC:
All along the way, the bank found an influence from the relative strength of the euro compared to the US dollar, with Moltke describing it as the “big thing that goes through our numbers”.
Deutsche Bank's shares rose by 5.76% at 9:15 a.m. in London (4:15 a.m.) and approached near 10-year highs.
More highlights were in the second quarter:
- Profit before taxes of 2.4 billion euros, an increase of 34% compared to the previous year, except for the effects of the legal dispute after the burden.
- The CET 1 capital ratio, a measure of the Solvency banks, was 14.2% compared to 13.8% in March district.
- Post -tax return for the rate of Gange Equity (red) of 10.1% of 11.9% in the previous quarter.
The company's core investment banking unit in the June Quartal recorded an increase in sales of 3% compared to the previous year to 2.7 billion euros, but reported mixed results in its subdivisions.
In fixed income and currencies, the bank recorded a “strong” income handling of 11%, which is due to higher interest income for financing and increased volatility and customer activities in the foreign exchange exchange. However, the development and advisory department of Deutsche Bank, which deals with relationships with large companies and sovereign institutions, created a decline in sales from 29% to 416 million euros in the second quarter and quoted “market uncertainty” and noted a total shift in some material transactions in the second half of 2025. “
The revenue for the corporate banks was dropped by 1% to 1.896 billion euros in the second quarter, with Moltke “a bit cold” found in corporate activities and decisions.
“The loan growth was sluggish when we would have liked to see,” he said and dismantled the effects of foreign exchange translations from the parts of the business that was shown in the US dollar. “Otherwise, as I said, it was a normalization of the deposit margins, a little effect.
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Overall, the European banks are of the challenge of navigating in a lower interest rate environment. The European Central Bank recently increased its key interest rate to 2% in June and is expected to retain this monetary policy during its meeting later in the Thursday session.
A recently from Germany and Widerer European Defense Expenses for Preliminary Annach supported the profits in the industry and offers new investment opportunities for European lenders. Christian Sewing, CEO of Deutsche Bank, said Christian Sewing, CEO of CNBC, said “we clearly, especially on the European side, underpinned” and emphasized that the lender increased both his portfolio appetite and the resources to advise customers on defense companies.
In Germany, the tumult, which caught German politics at the end of last year, has calmed down after a new ruling coalition under the Chancellor Friedrich Merz has given responsibilities. The renewed stability was reflected in the investor and customer mood and, according to Moltke, information from Moltke, also begins to cancel the business volume.
“This is a real change compared to recent years that where this was not the case,” he said.
But the largest economy of the European Union and third largest exporter worldwide now in trade uncertainty as a 27-nation block race to agree on a customs contract with US President Donald Trump by August 1.
“When tariffs occur in August, a recession in Germany cannot be excluded in 2025,” said Joachim Nagel, according to Reuters last week.
Moltke also recognized that US tariffs could represent a “relatively steep” increase in currency translations and an ultimate “headwind” for European exporters, but said that the effects for every company business will be very diverse.