Deutsche Bank reported its highest second quarter profits in nearly two decades last quarter, recovering from the legal settlements that damaged its earnings one year ago.
Profit attributable to shareholders was €1.49 billion, up from the €143 million loss seen one year ago following legal settlements from Deutsche Bank’s purchase of Postbank. Net revenue was €7.80 billion, rising 2.8% year-over-year and besting LSEG estimates of €7.76 billion.
“Despite a more challenging environment in the quarter, Deutsche Bank again delivered a post-tax RoTE of above 10%, demonstrating the strengths of our underlying business model. We are very happy to have delivered our highest second-quarter and first-half year profits since 2007,” said Deutsche Bank CEO Christian Sewing.
“This puts us on track to meet our 2025 targets, and we are positioning our Global Hausbank to grow further, including further raising capital distributions to shareholders beyond 2025.”
Diluted earnings per share were €0.48 last quarter, compared with the €0.28 loss in 2024’s second quarter. Profit before tax grew by 34% year-over-year, excluding the Postbank settlement’s impact, and reached €2.4 billion.
Profit before tax grew across all of Deutsche Bank’s segments last half. Its Investment Bank business saw profit increase by 18% from H1 2024 to €2.4 billion, though revenues dipped by 1% year-over-year in Q2.
Its Corporate Bank segment reported 13% year-over-year growth in profit before tax to €1.4 billion last half, while its Private Bank and Asset Management businesses posted profit growth of 50% and 52%.
The company’s CET1 capital ratio was 14.2% last quarter, up from 13.5% in 2024’s Q2.
Deutsche Bank said its results were in line with its 2025 guidance, which projects EU€32 billion in net revenue across the year.
Deutsche Bank’s share price (ETR: DBK) closed at €28.82, up from its previous close at €26.41. Its market capitalisation is €55.51 billion.
