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Deutsche Bank Expects Flat IB Revenue in Q1, Sees Higher RoTE by 2028
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Key Takeaways
Deutsche Bank expects Q1 investment bank revenue to remain flat as trading declines.
DB sees capital markets growth offsetting weaker trading revenues.
DB targets more than 13% RoTE by 2028, supported by improved execution and growth across core businesses.
At the European Financials Conference 2026, Deutsche Bank (DB - Free Report) indicated that its investment bank (IB) revenue is expected to remain flat in the first quarter of 2026. Management expects capital markets growth to offset a decline in trading revenues.
Looking ahead, the bank sees geopolitical volatility as a potential opportunity for its trading business if managed effectively. Management also noted that advisory contributions will continue to support revenues, providing more stability and visibility over time.
Christian Sewing, chief executive officer of Deutsche Bank, also highlighted that the asset management and private banking divisions are progressing well, with year-over-year growth.
DB’s 2026 & 2028 Outlook Remains on Track
Deutsche Bank reaffirmed that its broader transformation remains on track, with 2026 positioned as an investment year focused on technology and talent. Despite these investments, the bank continues to emphasize strict cost discipline and expects to deliver positive operating leverage over time.
For 2026, the bank projects revenues of around €33 billion ($38.7 billion), supported by higher net interest income and continued growth in fee-based income. During the European Financials Conference 2026, management also expressed confidence in surpassing its 2028 profitability targets, including a return on tangible equity (RoTE) above 13%, citing improved execution and strong business momentum.
Overall, stable performance in the investment bank segment, along with stronger contributions from other core businesses, is expected to support steady revenue growth for Deutsche Bank in the upcoming years.
DB’s Price Performance & Zacks Rank
Over the past year, shares of Deutsche Bank have gained 21% on the NYSE compared with the industry’s growth of 30.6%.
Bank of America (BAC - Free Report) and Citigroup (C - Free Report) are also expected to report solid capital markets performance in the first quarter of 2026.
At the Royal Bank of Canada Global Financial Institutions Conference, Dean Athanasia, co-president of Bank of America, highlighted strong first-quarter momentum for the bank’s investment banking business. Investment banking fees have risen nearly 10% year over year so far in the quarter. Global Markets revenues are expected to grow in the low double digits, driven by elevated market volatility and robust client activity. Wealth management fees are also up double digits, contributing to a projected 9% increase in non-interest income. With solid performance across sales and trading, investment banking, and wealth management, Bank of America is positioned to deliver strong fee income in the first quarter of 2026.
Citigroup, at the same conference, reiterated its strategic priorities and financial targets, highlighting strong growth opportunities despite persistent geopolitical and macroeconomic uncertainties. Citigroup expects first-quarter 2026 IB fees and markets revenues (equities and fixed income) to grow in the mid-teens year over year, supported by deal-making and equity capital markets activities
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Deutsche Bank Expects Flat IB Revenue in Q1, Sees Higher RoTE by 2028
Key Takeaways
At the European Financials Conference 2026, Deutsche Bank (DB - Free Report) indicated that its investment bank (IB) revenue is expected to remain flat in the first quarter of 2026. Management expects capital markets growth to offset a decline in trading revenues.
Looking ahead, the bank sees geopolitical volatility as a potential opportunity for its trading business if managed effectively. Management also noted that advisory contributions will continue to support revenues, providing more stability and visibility over time.
Christian Sewing, chief executive officer of Deutsche Bank, also highlighted that the asset management and private banking divisions are progressing well, with year-over-year growth.
DB’s 2026 & 2028 Outlook Remains on Track
Deutsche Bank reaffirmed that its broader transformation remains on track, with 2026 positioned as an investment year focused on technology and talent. Despite these investments, the bank continues to emphasize strict cost discipline and expects to deliver positive operating leverage over time.
For 2026, the bank projects revenues of around €33 billion ($38.7 billion), supported by higher net interest income and continued growth in fee-based income. During the European Financials Conference 2026, management also expressed confidence in surpassing its 2028 profitability targets, including a return on tangible equity (RoTE) above 13%, citing improved execution and strong business momentum.
Overall, stable performance in the investment bank segment, along with stronger contributions from other core businesses, is expected to support steady revenue growth for Deutsche Bank in the upcoming years.
DB’s Price Performance & Zacks Rank
Over the past year, shares of Deutsche Bank have gained 21% on the NYSE compared with the industry’s growth of 30.6%.
Currently, the company carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
IB Performance of Other Banks in Q1
Bank of America (BAC - Free Report) and Citigroup (C - Free Report) are also expected to report solid capital markets performance in the first quarter of 2026.
At the Royal Bank of Canada Global Financial Institutions Conference, Dean Athanasia, co-president of Bank of America, highlighted strong first-quarter momentum for the bank’s investment banking business. Investment banking fees have risen nearly 10% year over year so far in the quarter. Global Markets revenues are expected to grow in the low double digits, driven by elevated market volatility and robust client activity. Wealth management fees are also up double digits, contributing to a projected 9% increase in non-interest income. With solid performance across sales and trading, investment banking, and wealth management, Bank of America is positioned to deliver strong fee income in the first quarter of 2026.
Citigroup, at the same conference, reiterated its strategic priorities and financial targets, highlighting strong growth opportunities despite persistent geopolitical and macroeconomic uncertainties. Citigroup expects first-quarter 2026 IB fees and markets revenues (equities and fixed income) to grow in the mid-teens year over year, supported by deal-making and equity capital markets activities