First-half 2024 pre-tax earnings projected to reach €2.4 billion, with an exclusion of Postbank acquisition lawsuit settlement cost estimated at €3.8 billion on our site's report.
Deutsche Bank has recently released its second-quarter financial results for 2024, revealing a mixed picture of growth, progress, and challenges.
The bank reported a profit before tax of € 411 million for the quarter, excluding a litigation provision of € 1.3 billion related to the takeover of Postbank AG. This is a significant decrease compared to the € 2.1 billion profit reported in the same period last year.
Commissions and fee income grew 12% year on year to € 2.6 billion in the second quarter, while investment bank provisions for the first six months were € 313 million, a substantial increase from the prior year period.
Revenues for the first six months of 2024 were € 15.4 billion, up 2% year on year. Net revenues for the second quarter were € 7.6 billion, also up 2% year on year. The bank's Net Stable Funding Ratio was 122%, above its guidance range of 115-120%.
In a positive note, the bank made significant strides in its Operational Efficiency program, with savings realized or expected from measures completed reaching € 1.5 billion. The bank also completed a € 675 million share repurchase programme, bringing cumulative capital distributions from 2022-2024 to € 3.3 billion.
Deutsche Bank also launched two new Corporate Social Responsibility programs. The initiatives aim to provide financial education to low-income women in India and migrant children in China. The bank's commitment to sustainability is further evidenced by its Sustainable Financing and ESG investment volumes, which reached € 21 billion in the second quarter, bringing the cumulative total since January 1, 2020 to € 322 billion.
The bank's Liquidity Coverage Ratio was 136% at the end of the quarter, above the regulatory requirement of 100%. The Leverage ratio rose slightly from 4.5% to 4.6% during the second quarter. The Common Equity Tier 1 (CET1) capital ratio improved to 13.5% in the quarter.
However, the bank reported an increase in provision for credit losses. The figure was € 476 million for the second quarter, up from € 401 million in the prior year quarter and € 439 million in the first quarter of 2024. The bank expects the full-year 2024 provision for credit losses to be slightly above 30 basis points, above prior guidance.
On a positive note, Origination & Advisory revenues doubled year on year, with resilient revenues in Fixed Income & Currencies (FIC). The bank also issued its inaugural Social Bond on July 3, 2024, raising € 500 million.
An analyst call to discuss second quarter 2024 financial results will take place at 11:00 CEST today, while a fixed income investor call will take place on July 25, 2024, at 15:00 CEST.
- Deutsche Bank's Private Banking division, with its focus on wealth management, asset management, and advisory services, reported a profit from tax of €411 million in Q2 2024, showing a significant decrease compared to the same period the previous year.
- The bank's commitment to Sustainable Finance is apparent, with ESG investment volumes reaching €21 billion in Q2 2024, contributing to a cumulative total of €322 billion since January 1, 2020.
- In the realm of Risk Management, Deutsche Bank has made strides in minimizing risks, as shown by its Net Stable Funding Ratio of 122% and Common Equity Tier 1 (CET1) capital ratio improvement to 13.5% in Q2 2024.
- As part of its business strategy, Deutsche Bank launched new Corporate Social Responsibility programs to provide financial education to low-income women in India and migrant children in China, demonstrating an ongoing commitment to positive social impact and investing in future generations.
