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Deutsche Bank (DB) Shares Rise on Solid Q3 Earnings & Revenues
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Deutsche Bank (DB - Free Report) reported a third-quarter 2023 profit attributable to its shareholders of €1.03 billion ($1.12 billion), down 7.5% from the year-ago quarter. The Germany-based lender reported a profit before tax of €1.72 billion ($1.88 billion), up 6.7% year over year.
Shares of the company gained almost 7.4% in the Oct 25 trading session. This was largely due to higher net revenues, lower provisions and a strong capital position. However, a rise in operating expenses was an offsetting factor.
Revenues & Costs Rise, Provisions Fall
The bank generated net revenues of €7.13 billion ($7.76 billion), up 3.1% year over year. This upside primarily resulted from higher revenues in the Corporate Bank and Private Bank segments. Our estimate for net revenues was €6.95 billion.
Non-interest expenses of €5.16 billion ($5.62 billion) increased 4.2% from the prior-year quarter. Our estimate for non-interest expenses was €4.94 billion.
Provision for credit losses was €245 million ($266 million), down 30% from the prior-year quarter.
Segmental Performance
Net revenues of €1.89 billion ($2.06 billion) at the Corporate Bank division increased 20.8% year over year. The rise was mainly driven by an increase in net interest income (NII) and remaining income. Our estimate for the same was €1.64 billion.
Investment Bank’s net revenues totaled €2.27 billion ($2.47 billion), down 4.3% year over year. This highlights a decline in Fixed Income, Currency Sales & Trading revenues and other revenues. Our estimate for the metric was €2.46 billion.
Private Bank reported net revenues of €2.34 billion ($2.55 billion), up 3.4% year over year. Higher NII led to the increase. Our estimate for the metric was €2.23 billion.
Asset Management generated net revenues of €594 million ($646.4 million), down 10.1% year over year. Declines in management fees, as well as performance and transaction fees, led to the fall.
Corporate & Other reported net revenues of €35 million ($38.1 million), down 36.4% year over year.
Capital Position Robust
Deutsche Bank’s Common Equity Tier 1 capital ratio was 13.9% as of Sep 30, 2023, up from the year-ago quarter’s 13.3%. Risk-weighted assets were €354 billion ($385.2 billion), down 4.1% year over year.
The leverage ratio on a fully loaded basis was 4.7%, up from the year-ago quarter's 4.3%.
Share Repurchase Update
On Jul 25, Deutsche Bank received supervisory approvals for its share repurchases of up to €450 million by 2023-end.
During the quarter, it repurchased nearly 27.5 million shares for a total consideration of approximately €271 million.
Our Viewpoint
Deutsche Bank’s financial performance seems encouraging. The performance of the bank improved due to the Corporate Bank and Private Bank segments over the prior-year quarter. An increase in net revenues is expected to drive earnings growth in the near term.
Deutsche Bank Aktiengesellschaft Price, Consensus and EPS Surprise
Barclays (BCS - Free Report) reported a third-quarter 2023 net income attributable to ordinary equity holders of £1.27 billion ($1.61 billion), down 16% from the prior-year quarter.
BCS recorded an increase in revenues, along with higher credit impairment charges. Operating expenses increased marginally in the quarter under review.
ICICI Bank (IBN - Free Report) reported its second-quarter fiscal 2024 (ended Sep 30) results. Net income was INR 102.61 billion ($1.2 billion), up 35.8% from the prior-year quarter.
Results were driven by a rise in NII, non-interest income, growth in loans and deposits, and higher rates. However, higher operating expenses posed as the undermining factor for IBN.
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Deutsche Bank (DB) Shares Rise on Solid Q3 Earnings & Revenues
Deutsche Bank (DB - Free Report) reported a third-quarter 2023 profit attributable to its shareholders of €1.03 billion ($1.12 billion), down 7.5% from the year-ago quarter. The Germany-based lender reported a profit before tax of €1.72 billion ($1.88 billion), up 6.7% year over year.
Shares of the company gained almost 7.4% in the Oct 25 trading session. This was largely due to higher net revenues, lower provisions and a strong capital position. However, a rise in operating expenses was an offsetting factor.
Revenues & Costs Rise, Provisions Fall
The bank generated net revenues of €7.13 billion ($7.76 billion), up 3.1% year over year. This upside primarily resulted from higher revenues in the Corporate Bank and Private Bank segments. Our estimate for net revenues was €6.95 billion.
Non-interest expenses of €5.16 billion ($5.62 billion) increased 4.2% from the prior-year quarter. Our estimate for non-interest expenses was €4.94 billion.
Provision for credit losses was €245 million ($266 million), down 30% from the prior-year quarter.
Segmental Performance
Net revenues of €1.89 billion ($2.06 billion) at the Corporate Bank division increased 20.8% year over year. The rise was mainly driven by an increase in net interest income (NII) and remaining income. Our estimate for the same was €1.64 billion.
Investment Bank’s net revenues totaled €2.27 billion ($2.47 billion), down 4.3% year over year. This highlights a decline in Fixed Income, Currency Sales & Trading revenues and other revenues. Our estimate for the metric was €2.46 billion.
Private Bank reported net revenues of €2.34 billion ($2.55 billion), up 3.4% year over year. Higher NII led to the increase. Our estimate for the metric was €2.23 billion.
Asset Management generated net revenues of €594 million ($646.4 million), down 10.1% year over year. Declines in management fees, as well as performance and transaction fees, led to the fall.
Corporate & Other reported net revenues of €35 million ($38.1 million), down 36.4% year over year.
Capital Position Robust
Deutsche Bank’s Common Equity Tier 1 capital ratio was 13.9% as of Sep 30, 2023, up from the year-ago quarter’s 13.3%. Risk-weighted assets were €354 billion ($385.2 billion), down 4.1% year over year.
The leverage ratio on a fully loaded basis was 4.7%, up from the year-ago quarter's 4.3%.
Share Repurchase Update
On Jul 25, Deutsche Bank received supervisory approvals for its share repurchases of up to €450 million by 2023-end.
During the quarter, it repurchased nearly 27.5 million shares for a total consideration of approximately €271 million.
Our Viewpoint
Deutsche Bank’s financial performance seems encouraging. The performance of the bank improved due to the Corporate Bank and Private Bank segments over the prior-year quarter. An increase in net revenues is expected to drive earnings growth in the near term.
Deutsche Bank Aktiengesellschaft Price, Consensus and EPS Surprise
Deutsche Bank Aktiengesellschaft price-consensus-eps-surprise-chart | Deutsche Bank Aktiengesellschaft Quote
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Foreign Banks
Barclays (BCS - Free Report) reported a third-quarter 2023 net income attributable to ordinary equity holders of £1.27 billion ($1.61 billion), down 16% from the prior-year quarter.
BCS recorded an increase in revenues, along with higher credit impairment charges. Operating expenses increased marginally in the quarter under review.
ICICI Bank (IBN - Free Report) reported its second-quarter fiscal 2024 (ended Sep 30) results. Net income was INR 102.61 billion ($1.2 billion), up 35.8% from the prior-year quarter.
Results were driven by a rise in NII, non-interest income, growth in loans and deposits, and higher rates. However, higher operating expenses posed as the undermining factor for IBN.