Deutsche Bank Q3 Profit Soars, AuM Down; To Meet FY22 Goals; Stock Down

German banking major Deutsche Bank AG reported Wednesday that its third-quarter profit grew more than threefold with higher revenues and weak expenses. Profit before tax was its highest third quarter result since 2006. Meanwhile, Assets under management declined. The bank said it is on track to meet fiscal 2022 outlook.

Deutsche Bank shares were losing around 2 percent in the morning trading in Germany, and more than 1 percent in pre-market activity on the NYSE.

Christian Sewing, CEO, said, “In the third quarter and first nine months of 2022, we delivered our best profits in more than a decade for both these periods. … We have significantly improved Deutsche Bank’s earnings power and we are well on track to meet our 2022 goals.”

In its third quarter, net inflows were 8 billion euros, driven by Alternatives and Cash products.

Assets under management were 833 billion euros at quarter-end, down 5 percent from 880 billion euros in the prior year quarter.

Profit attributable to shareholders soared to 1.11 billion euros from 194 million euros in the prior year. Earnings per share were 0.57 euros, compared to 0.14 euros a year ago.

Profit before tax was 1.62 billion euros, up nearly threefold compared to 554 million euross in the prior year quarter.

The company noted that its profit growth reflected 15 percent year-on-year growth in net revenues together with an 8 percent reduction in noninterest expenses.

Core Bank, which excludes the Capital Release Unit, produced third-quarter pre-tax profit of 1.8 billion euros, more than doubled from last year, driven by 14 percent growth in net revenues combined with a 6 percent reduction in noninterest expenses.

The Capital Release Unit delivered its 10th successive quarter of year-on-year loss reduction with a loss before tax of 216 million euros.

Provision for credit losses was 350 million euros in the quarter, up from 117 million euros in the prior year quarter.

Total net revenues were 6.92 billion euros, up 15 percent from last year’s 6.04 billion euros, with growth in all core businesses.

Corporate Bank revenue was up 25 percent to 1.56 billion euros, and Investment Bank revenue rose 6 percent to 2.37 billion euros. Private Bank revenue increased 13 percent to 2.27 billion euros. Asset Management revenues went up 1 percent to 661 million euros.

In Germany, Deutsche Bank shares were trading at 9.13 euros, down 1.52 percent.

In pre-market activity on the NYSE, the shares were trading at $9.17, down 1.3 percent.

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