FRANKFURT (dpa-AFX) - Deutsche Bank AG (DB), the German lending major, on Wednesday reported a rise in net profit for the third quarter that reflected partial release of litigation provisions, improved revenue, lower non-interest expenses.
In addition, the company has noted that it is on track to achieve its annual revenue target.
Further, the Bank added that it has recently sought ECB authorization for further share repurchases.
For the three-month period to September 30, the company reported a net income of 1.461 billion euros, higher than 1.031 billion euros, posted for the same period last year.
Profit before tax rose to 2.262 billion euros from prior year's 1.723 billion euros.
These earnings were helped by around 440 million euros partial release of Postbank-related litigation provisions, combined with operating momentum.
Excluding Postbank-related litigation release, net profit moved up by 8 percent to 1.3 billion euros from last year.
Excluding Postbank-related litigation release, pre-tax income was 1.8 billion euros, up 6 percent, year-on-year basis.
Noninterest expenses dropped to 4.744 billion euros from 5.164 billion euros in 2023.
Provision for credit losses, however, surged to 494 million euros from last year's 245 million euros.
Net interest income or NII from Corporate Bank segment was 1.2 billion euros, down slightly year on year, reflecting normalizing deposit margins.
NII from Private Bank segment declined by 6 percent in an environment of stabilizing interest rates.
Revenue was 7.501 billion euros, up from previous year's 7.132 billion euros, with 5 percent growth in commissions and fee income, as net interest income in the key segments of the banking book was broadly stable year on year.
Corporate and Other segment generated revenue of 157 million euros, compared with prior year's 35 million euros. Revenue from Investment Bank segment stood at 2.523 billion euros as against 2.271 billion euros a year ago.
Looking ahead, James von Moltke, CFO of Deutsche Bank, said: 'We will meet our 30 billion euros revenue guidance for the year 2024 and that our continued revenue momentum, cost efficiencies, capital strength and moderating credit provisions all put us on track to deliver on our 2025 goals.'
Copyright(c) 2024 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2024 AFX News
