Bank aims to boost growth and profitability while reducing costs
- Deutsche Bank anticipates accelerated shareholder returns
- Third-quarter revenue rose by 3%
- Net profit fell due to rising costs and taxes
- Risk-weighted assets to be further reduced by EUR10 billion
- Lower anticipated Basel III impact could free up EUR3 billion in additional capital
- Distributions to shareholders of EUR1.57 billion over 2022 and first nine months of 2023
- On track to reach target of more than EUR1 billion in distribution in 2023
- Further share buybacks anticipated in 2024
- After-tax profit down 3% due to higher effective tax rate
- Net interest income declined by 9% compared to the previous year
- Non-interest expenses rose by 4% to EUR5.16 billion
- Loan loss provisions in line with full-year guidance
- EUR11 billion of inflows across private bank and asset-management businesses
- Deposit revenues expected to normalize in coming quarters
- EUR29 billion in net revenue expected for the year
- Earnings in the fourth quarter may be impacted by one-off items
Factuality Level: 7
Justification: The article provides specific financial figures and statements from Deutsche Bank regarding its third-quarter performance. However, it does not provide any external sources or analysis to verify the accuracy of the information. Additionally, the article does not provide any context or comparison to industry standards or competitors, making it difficult to fully assess the significance of the bank’s performance.
Noise Level: 6
Justification: The article provides information on Deutsche Bank’s financial performance in the third quarter and its plans for shareholder returns. However, it lacks in-depth analysis and does not explore the consequences of the bank’s decisions on those who bear the risks. The article also does not provide evidence or data to support its claims. Overall, it contains some relevant information but lacks depth and rigor.
Financial Relevance: Yes
Financial Markets Impacted: Deutsche Bank
Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article pertains to Deutsche Bank’s financial performance and its plans for shareholder returns. There is no mention of any extreme events.
Public Companies: Deutsche Bank (DB)
Private Companies:
Key People: Christian Sewing (Chief Executive Officer)
Deutsche Bank has announced its anticipation of accelerated and expanded shareholder returns following a rise in third-quarter revenue. Despite a decline in net profit due to increasing costs and taxes, the bank remains optimistic about its future prospects. It plans to further reduce risk-weighted assets by EUR10 billion, potentially freeing up EUR3 billion in additional capital. Distributions to shareholders have already reached EUR1.57 billion, and the bank is on track to meet its target of more than EUR1 billion in distribution for 2023. Share buybacks are also expected in 2024. However, after-tax profit was down 3% due to a higher effective tax rate, and net interest income declined by 9% compared to the previous year. Non-interest expenses rose by 4% to EUR5.16 billion, driven by non-operating costs. Loan loss provisions remain in line with the bank’s full-year guidance. On a positive note, the bank saw EUR11 billion of inflows across its private bank and asset-management businesses. Deutsche Bank expects deposit revenues to normalize in the coming quarters, partially offset by rising non-interest rate revenue streams. The bank aims to achieve EUR29 billion in net revenue for the year, but warns that the fourth quarter may be impacted by both positive and negative one-off items.
