No recommendation
No news or research item is a personal recommendation to deal. Hargreaves Lansdown may not share ShareCast's (powered by Digital Look) views.
(Sharecast News) - Shares in Deutsche Bank rose on Wednesday after Germany's largest lender reported record profits for the third consecutive quarter, supported by higher revenues and strong growth in its corporate banking and wealth management businesses.
The bank said pre-tax profit increased 8% year-on-year to 2.63bn in the three months to September. Diluted earnings per share rose 6% to 0.94.
Net revenues increased 4% to 8.34bn, with the corporate banking division delivering record revenues and wealth management recording double-digit growth.
Non-interest expenses were unchanged at 5.2bn, while the cost-to-income ratio improved to 62.4% from 64.4% a year earlier.
However, provisions for credit losses increased 9% quarter-on-quarter to 501m, reflecting further efforts to reduce exposure to commercial real estate and a specific incident in the corporate banking division.
The investment banking division reported broadly stable revenues compared with the record third quarter of 2025. Fixed income and currencies revenues declined 3% to 2.4bn, while investment banking and capital markets revenues were largely unchanged at 507m.
Meanwhile, assets under management across its private banking and asset management divisions increased 50bn during the quarter to 2trn, supported by record net inflows of 47bn.
Deutsche Bank's common equity tier one capital ratio stood at 14%, while the lender completed 1.5bn of share buybacks during 2026.
"We grew revenues with outperformance in our focused growth areas, captured record inflows in our asset-gathering businesses, and achieved strong volume growth in loans and deposits," said chief executive Christian Sewing.
"We see encouraging momentum in Germany, where increasing confidence among clients is creating further growth opportunities for us."
For the first nine months of 2026, post-tax profit rose 7% to a record 5.9bn, while revenues increased 5% to 25.5bn. The bank reiterated its full-year revenue ambition of more than 33bn and said it remained on track to meet its 2026 objectives.
It also expressed confidence in its longer-term profitability ambitions, including a return on tangible equity target of more than 13% in 2028.
Deutsche Bank shares were up 3.9% at 30.00 by 1519 GMT.