Deutsche Bank announced today a profit before tax of €2.3 billion for the third quarter (Q3) of 2024, marking a significant 31% increase compared to the same period last year. This positive performance was due to a partial release of approximately €440 million in litigation provisions related to the bank’s acquisition of Postbank AG. Excluding this release, profit before tax stood at €1.8 billion, reflecting a 6% year-on-year rise from €1.7 billion in Q3 2023.
Deutsche Bank Posts €2.3 Billion Profit in Q3 2024
The bank’s post-tax profit reached €1.7 billion, an impressive 39% increase from the previous year. When adjusted for the Postbank litigation release, the figure was €1.3 billion, up 8% from €1.2 billion in Q3 2023. The return on average tangible shareholders’ equity (RoTE) for the third quarter was reported at 10.2%, or 7.6% when adjusted for the litigation release, compared to 7.3% in the same quarter last year. Additionally, the return on average shareholders’ equity (RoE) improved to 9.1%, up from 6.5% year-on-year.
Deutsche Bank’s cost/income ratio improved to 63%, or 69%, when excluding the litigation release, down from 72% in Q3 2023. For the first nine months of 2024, the bank reported a profit before tax of €4.7 billion, a decrease of 5% year-on-year, or €5.6 billion, up 13% when adjusted for the Postbank litigation impact.
Net revenues for the third quarter reached €7.5 billion, up 5% from the previous year, driven by strong performance in commissions and fee income, which grew 5% to €2.5 billion. For the first nine months, total revenues increased by 3% to €22.9 billion, aligning with the bank’s revenue guidance of approximately €30 billion for the full year 2024.
With steady growth in net revenues and commissions, Deutsche Bank is on track to meet its full-year revenue guidance, reflecting confidence in its business model. As it navigates the evolving economic environment, the bank’s improved return metrics and cost efficiency position it well for continued success in the coming quarters.
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