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Why Is Deutsche Bank (DB) Up 8.2% Since Last Earnings Report?
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A month has gone by since the last earnings report for Deutsche Bank (DB - Free Report) . Shares have added about 8.2% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Deutsche Bank due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Deutsche Bank Q2 Earnings Rise Y/Y on Higher Revenues
Deutsche Bank reported second-quarter 2026 earnings attributable to its shareholders of €1.64 billion ($1.87 billion), up 10.5% year over year.
This Germany-based lender reported a profit before tax of €2.68 billion ($3.05 billion), up 10.7% from the year-ago quarter.
Increased revenues across all four business segments aided results. However, higher non-interest expenses and provisions for credit losses were headwinds.
Revenues & Expenses
The bank generated net revenues of €8.48 billion ($9.65 billion), up 8.7% year over year.
Non-interest expenses of €5.34 billion ($6.07 billion) increased 7.7% from the prior-year quarter. The rise reflected higher fixed-pay and performance-related compensation, continued franchise investments, the impact of the announced sale of the Private Bank’s India franchise and the non-recurrence of litigation-related releases in the prior-year quarter.
Provision for credit losses was €460 million ($523.3 million), up 8.7% from the prior-year quarter.
Segmental Performance
Corporate Bank: Net revenues from the segment were €1.91 billion ($2.17 billion), up 1% year over year. Growth in net interest income and commission and fee income supported results.
Investment Bank: This segment’s net revenues totaled €3.19 billion ($3.62 billion), which increased 18.5% year over year. The upside was driven by record Fixed Income & Currencies revenues and 36% growth in Investment Banking & Capital Markets revenues.
Private Bank: Net revenues of €2.57 billion ($2.92 billion) rose 8.2% year over year. The increase reflected higher deposit and investment product revenues.
Asset Management: Net revenues of €756 million ($860 million) rose 4.3% year over year. A 13% increase in management fees, supported by higher average assets under management, aided results.
Corporate & Other: The segment reported net revenues of €65 million ($73.9 million), down 48% from the prior-year quarter.
Capital Position
The company’s Common Equity Tier 1 capital ratio was 13.9% as of June 30, 2026, down from 14.2% in the year-ago quarter.
The leverage ratio was 4.5%, down from the year-ago quarter’s 4.7%.
Outlook
2026
Deutsche Bank expects full-year revenues of around €33 billion. This is supported by banking book net interest income increasing to around €14 billion and continued growth in net commission and fee income.
Management expects noninterest expenses to increase to slightly above €21 billion in 2026. This includes approximately €900 million of incremental investments to support growth initiatives and efficiency measures.
Provision for credit losses is expected to trend moderately downward in 2026 compared with 2025, moving closer to an average run rate of around 30 basis points through 2028.
Post-tax Return on tangible equity is expected to improve further as part of the next phase of execution, with annual operating performance improvements.
Management expects to increase the payout ratio to 60% beginning in 2026. Dividend per share is expected to grow modestly on a continuous basis, complemented by share buybacks.
The CET1 capital ratio is expected to remain within the 13.5%–14.0% operating range. If the ratio sustainably exceeds this range, management may deploy additional capital through distributions, subject to regulatory approval.
Medium-Term Outlook (2028)
Deutsche Bank expects a post-tax Return on Tangible Equity of greater than 13% by 2028.
Management expects the cost/income ratio to decline to below 60% by 2028.
The bank targets a Group revenue CAGR of greater than 5% between 2025 and 2028.
The CET1 capital ratio operating range is expected to remain at 13.5%–14.0%.
The payout ratio is targeted at 60%, subject to capital position and regulatory approval.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -8.7% due to these changes.
VGM Scores
At this time, Deutsche Bank has a poor Growth Score of F, 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 top 40% for value investors.
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 broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, Deutsche Bank has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
View the Zacks #1 Rank List
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Why Is Deutsche Bank (DB) Up 8.2% Since Last Earnings Report?
A month has gone by since the last earnings report for Deutsche Bank (DB - Free Report) . Shares have added about 8.2% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Deutsche Bank due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Deutsche Bank Q2 Earnings Rise Y/Y on Higher Revenues
Deutsche Bank reported second-quarter 2026 earnings attributable to its shareholders of €1.64 billion ($1.87 billion), up 10.5% year over year.
This Germany-based lender reported a profit before tax of €2.68 billion ($3.05 billion), up 10.7% from the year-ago quarter.
Increased revenues across all four business segments aided results. However, higher non-interest expenses and provisions for credit losses were headwinds.
Revenues & Expenses
The bank generated net revenues of €8.48 billion ($9.65 billion), up 8.7% year over year.
Non-interest expenses of €5.34 billion ($6.07 billion) increased 7.7% from the prior-year quarter. The rise reflected higher fixed-pay and performance-related compensation, continued franchise investments, the impact of the announced sale of the Private Bank’s India franchise and the non-recurrence of litigation-related releases in the prior-year quarter.
Provision for credit losses was €460 million ($523.3 million), up 8.7% from the prior-year quarter.
Segmental Performance
Corporate Bank: Net revenues from the segment were €1.91 billion ($2.17 billion), up 1% year over year. Growth in net interest income and commission and fee income supported results.
Investment Bank: This segment’s net revenues totaled €3.19 billion ($3.62 billion), which increased 18.5% year over year. The upside was driven by record Fixed Income & Currencies revenues and 36% growth in Investment Banking & Capital Markets revenues.
Private Bank: Net revenues of €2.57 billion ($2.92 billion) rose 8.2% year over year. The increase reflected higher deposit and investment product revenues.
Asset Management: Net revenues of €756 million ($860 million) rose 4.3% year over year. A 13% increase in management fees, supported by higher average assets under management, aided results.
Corporate & Other: The segment reported net revenues of €65 million ($73.9 million), down 48% from the prior-year quarter.
Capital Position
The company’s Common Equity Tier 1 capital ratio was 13.9% as of June 30, 2026, down from 14.2% in the year-ago quarter.
The leverage ratio was 4.5%, down from the year-ago quarter’s 4.7%.
Outlook
2026
Deutsche Bank expects full-year revenues of around €33 billion. This is supported by banking book net interest income increasing to around €14 billion and continued growth in net commission and fee income.
Management expects noninterest expenses to increase to slightly above €21 billion in 2026. This includes approximately €900 million of incremental investments to support growth initiatives and efficiency measures.
Provision for credit losses is expected to trend moderately downward in 2026 compared with 2025, moving closer to an average run rate of around 30 basis points through 2028.
Post-tax Return on tangible equity is expected to improve further as part of the next phase of execution, with annual operating performance improvements.
Management expects to increase the payout ratio to 60% beginning in 2026. Dividend per share is expected to grow modestly on a continuous basis, complemented by share buybacks.
The CET1 capital ratio is expected to remain within the 13.5%–14.0% operating range. If the ratio sustainably exceeds this range, management may deploy additional capital through distributions, subject to regulatory approval.
Medium-Term Outlook (2028)
Deutsche Bank expects a post-tax Return on Tangible Equity of greater than 13% by 2028.
Management expects the cost/income ratio to decline to below 60% by 2028.
The bank targets a Group revenue CAGR of greater than 5% between 2025 and 2028.
The CET1 capital ratio operating range is expected to remain at 13.5%–14.0%.
The payout ratio is targeted at 60%, subject to capital position and regulatory approval.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -8.7% due to these changes.
VGM Scores
At this time, Deutsche Bank has a poor Growth Score of F, 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 top 40% for value investors.
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 broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, Deutsche Bank has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.