Deutsche Bank Reaffirms 2025 Outlook After Strong Q2 Profit Beat
Deutsche Bank (ETR:DBKGn) reaffirmed its full-year guidance after reporting better-than-expected second-quarter earnings, supported by solid revenue growth across its client-focused divisions, despite a challenging market environment.
Germany’s largest bank by assets posted an after-tax profit of €1.73 billion for the three months ending June 30, a significant improvement from €52 million in the same period last year, when the bank incurred legal expenses related to its Postbank acquisition. This result also beat the €1.45 billion consensus estimate compiled by the bank.
Net profit attributable to shareholders rose to €1.485 billion, reversing a €143 million loss in the prior year and surpassing expectations of €1.2 billion.
“We’re pleased to report our strongest second-quarter and first-half profits since 2007, which keeps us on track to meet our 2025 targets,” said CEO Christian Sewing.
Group revenue climbed 3% year-over-year to €7.80 billion, slightly above the expected €7.665 billion, driven largely by strong performance in asset management and investment banking.
Revenue from fixed-income and currency trading rose 11%, far exceeding projections for a 3.1% increase.
However, the origination and advisory segment saw revenue fall 29%, deeper than the anticipated 18% drop, following a particularly strong quarter last year and recent leadership transitions in the division.
The bank also revised its forecast for its corporate banking unit, now expecting revenue to remain “essentially flat” rather than “slightly higher” as previously guided.
Return on average tangible shareholders’ equity hit 10.1% for the quarter, aligning with the bank’s full-year target and surpassing the 8.1% estimate from analysts.
Looking ahead, Deutsche Bank continues to target approximately €32 billion in revenue by 2025.
