Deutsche Bank's Q3 Earnings Beat Expectations Despite 8% Dip in Net Profit

Revenue growth driven by strong net interest income and pricing discipline in the corporate bank sector, with Deutsche Bank also projecting increased and expedited shareholder distributions, and scope to release an additional €3 billion in capital.

Deutsche Bank's Q3 FY23 saw a 3% year-on-year revenue growth, rising to €7.13 billion ($7.76 billion), surpassing the consensus of $7.11 billion.
Corporate Bank net revenues witnessed a 21% Y/Y growth to €1.89 billion due to strong net interest income and pricing discipline across segments. Private Bank revenues also increased by 3% Y/Y to €2.34 billion.
The company's Investment Bank and Asset Management revenues experienced a decline, with the former falling 4% Y/Y to €2.27 billion and the latter 10% Y/Y to €594 million.
Deutsche Bank's provision for credit losses stood at €245 million, down from €401 million in Q2 2023, and its Common Equity Tier 1 capital ratio stood at 13.9%, up from 13.8% at the end of Q2 2023.
Despite an 8% dip in net profit, Deutsche Bank was successful in improving its capital outlook and is on track for share repurchases and dividends of over €1 billion in 2023. The bank also hinted at its potential to release an additional €3 billion in capital.