Deutsche Bank's Q2, First-Half Results Shine

Editorial Staff

27 July 2022

today said that its private banking arm logged a pre-tax profit of €463 million ($469 million), versus a €15 million loss a year ago.

Private bank net revenues were €2.2 billion, rising 7 per cent on a year earlier, or 4 per cent if adjusted for effects such as a cut in foregone revenues from a German court ruling and lower revenues linked to workout activities from its acquired Sal Oppenheim business. Within the German private bank, the group said revenues rose 11 per cent, although the gain was only 3 per cent if adjusted for the reduced impact of the BGH ruling. (This relates to the German Federal Court of Justice (BGH) April 2021 ruling on customer consent for pricing changes on current accounts and the non-recurrence of a negative prior-year impact from the sale of Postbank Systems AG.)

At the international private bank, revenues rose 2 per cent, or 6 per cent if adjusted for the effect on revenues of Sal Oppenheim workout activities.

The German lender said its private bank logged net new business volumes of €11 billion in the quarter. This included net inflows of €7 billion, including inflows into investment products of €5 billion and new deposits of €2 billion, and net new client loans of €4 billion.

For the Frankfurt-listed group, it said pre-tax profit rose 33 per cent to €1.5 billion. Its cost-income ratio narrowed to 73 per cent from 80 per cent a year earlier. Its Common Equity Tier 1 ratio – a standard international measure of a bank’s capital buffer – was 13.0 per cent, up from 12.8 per cent in the first quarter of 2022.

For the first six months, profit before tax was €3.2 billion, up 16 per cent.

“With the best half-year profits since 2011, we have proven – once again – that we can deliver growth and rising profits in a challenging environment,” Christian Sewing, chief executive, said. “We are particularly pleased with the progress of our corporate bank and private bank. Thanks to our successful transformation, we’re well on track to deliver sustainable and well-balanced returns through our four-strong core businesses.”

Provision for credit losses was €233 million in Q2, up from €75 million in the second quarter of 2021, it added.