A month has gone by since the last earnings report for Deutsche Bank (DB Quick QuoteDB - Free Report) . Shares have lost about 1.3% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Deutsche Bank due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.

Deutsche Bank Q3 Earnings Rise Y/Y, Provisions Decline Y/Y

Deutsche Bank reported third-quarter 2025 earnings attributable to its shareholders of €1.56 billion ($1.82 billion), up 7% year over year.

This Germany-based lender reported a record profit before tax of €2.4 billion ($2.8 billion), up 8% from the year-ago quarter. Excluding the €440 million ($512.9 million) positive impact from the partial release of Postbank-related litigation provisions in the prior-year quarter, profit before tax increased 34% year over year.

Increased revenues and lower provision for credit losses aided results. However, higher expenses were a spoilsport.

Deutsche Bank’s Revenues & Expenses

The bank generated net revenues of €8 billion ($9.4 billion), up 7.2% year over year.

Non-interest expenses of €5.2 billion ($6 billion) increased 9.2% from the prior-year quarter.

Adjusted non-interest expenses (excluding non-operating items) were €5 billion ($5.8 billion), down slightly from the prior-year quarter.

Provision for credit losses was €417 million ($486 million), down 15.5% from the prior-year quarter.

DB’s Segmental Performance

Corporate Bank: Net revenues from the segment were €1.8 billion ($2.1 billion), down 1.4% year over year. A decrease in Institutional Client Services and Business Banking revenues hurt the results.

Investment Bank: This segment’s net revenues totaled €2.9 billion ($3.5 billion), up 18% year over year. The upside was primarily driven by growth across Fixed Income and Currencies, and Equity Origination & Advisory.
 

Private Bank: Net revenues of €2.4 billion ($2.8 billion) were up 4.1% year over year.

Asset Management: Net revenues of €734 million ($855.5 million) rose 11.2% year over year. An increase in performance and transaction fees led to the rise.

Corporate & Other: The segment reported net revenues of €99 million ($115.4 million), down 36.9% from the prior-year quarter.

Deutsche Bank’s Capital Position

DB’s Common Equity Tier 1 capital ratio was 14.5% as of Sept. 30, 2025, up from the year-ago quarter’s 13.8%.

The leverage ratio on a fully loaded basis was 4.6%, unchanged from the year-ago quarter.

2025 Outlook

Deutsche Bank expects to achieve €32 billion in revenues for 2025. This aligns with its 2021-2025 CAGR target of 5.5-6.5%, supported by continued execution of its growth strategy.

Management expects total costs of €20 billion.

Deutsche Bank has an RWA optimization target of €25-€30 billion.

Provisions are expected to normalize toward €350-€400 million per quarter by 2025, reflecting improved CRE market conditions and the resolution of transitional Postbank integration effects.

Post-tax Return on average tangible equity is expected to be above 10%.

Management expects the cost/income ratio to be less than 65%.

The CET1 capital ratio is anticipated between 13.5% and 14.0%.

The total payout ratio is expected to be 50%.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a upward trend in estimates review.

VGM Scores

At this time, Deutsche Bank has a subpar Growth Score of D, a score with the same score on the momentum front. However, the stock was allocated a score of B on the value side, putting it in the second quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. It comes with little surprise Deutsche Bank has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.

Performance of an Industry Player

Deutsche Bank is part of the Zacks Banks - Foreign industry. Over the past month, HSBC (HSBC Quick QuoteHSBC - Free Report) , a stock from the same industry, has gained 0.3%. The company reported its results for the quarter ended September 2025 more than a month ago.

HSBC reported revenues of $17.79 billion in the last reported quarter, representing a year-over-year change of +4.6%. EPS of $1.80 for the same period compares with $1.70 a year ago.

HSBC is expected to post earnings of $1.45 per share for the current quarter, representing no change from the year-ago quarter. Over the last 30 days, the Zacks Consensus Estimate has changed +11.5%.

HSBC has a Zacks Rank #2 (Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of F.