Deutsche Bank AG Earnings - Q3 2025 Analysis & Highlights
Key Takeaways
Deutsche Bank's Q3 2025 earnings call highlighted record profitability, alignment with full-year goals, and strength across all four global Hausbank businesses. Discussions covered revenue growth, cost discipline, asset quality, capital efficiencies, and strategic execution. The call also addressed net interest income, loan book development, deposit growth, liquidity metrics, capital ratios, and issuance plans. Forward-looking statements were included with a precautionary warning.
Key Financial Results
Nine-month revenues reached €24.4 billion, aligning with the full-year goal of around €32 billion before FX effects.
Post-tax return on tangible equity was 10.9%, meeting the full-year target of above 10%.
The cost/income ratio was 63%, consistent with the target of below 65%.
Pre-provision profit was €9 billion for the first nine months, up nearly 50% year-on-year.
Net commission and fee income increased by 5% year-on-year.
Noninterest expenses decreased by 8% year-on-year.
CET1 ratio increased to 14.5%, up 26 basis points sequentially.
Business Segment Results
All four businesses in the Global Hausbank delivered double-digit profit growth and RoTE in the first nine months.
The Corporate Bank saw strong fee growth of 5% and was recognized as the Best Trade Finance Bank.
The Investment Bank experienced increased activity across the client spectrum.
The Private Bank's profits were up 71%.
Assets under management in Wealth Management grew by €40 billion year-to-date, with net inflows of €25 billion.
Asset Management achieved sustainable returns of 25%.
Capital Allocation
The company launched its second share buyback program of 2025, with a value of €250 million, which was completed last week.
Cumulative distributions since 2022 reached €5.6 billion.
The company called a $1.25 billion instrument in September.
Industry Trends and Dynamics
The company is benefiting from strength in European ETFs and is expanding its offering in that area.
Credit markets developed constructively in the third quarter.
Competitive Landscape
The company is focused on growing the FIC franchise and expanding market share.
The company believes that the de-emphasis of sustainability by some US peers gives more space to Deutsche Bank and others engaged on the topic.
Macroeconomic Environment
Client demand in the Corporate Bank remained muted due to geopolitical uncertainties.
Lending in the core bank is expected to benefit from the fiscal stimulus in Germany and accelerate over the course of 2026.
Growth Opportunities and Strategies
The Corporate Bank continues to scale the Global Hausbank model.
The Private Bank is delivering on its strategic commitment to a capital-efficient balance sheet through targeted mortgage reductions.
The lending outlook remains strong in FIC, reflecting a strategic focus on growing the franchise and expanding market share.
The company expects further inflation on deposit campaigns in the Private Bank and sees opportunities for growth and portfolio optimizations in the Corporate Bank.
Financial Guidance and Outlook
The company is on track to meet its full-year 2025 targets and remains confident in delivering a return on tangible equity well above 10% and a cost/income ratio below 65%.
The company anticipates lower provisioning levels in the second half of the year, despite uncertainty from developments around commercial real estate and the macroeconomic environment.
2026 requirements are expected to be in a similar, possibly slightly lower range as compared to 2025.
Residual funding for the year 2025 will be focused on the senior preferred instruments.
The company expects to finish the year with a pro forma CET1 ratio of approximately 14%.
