Despite Revenue Growth, Costs and Taxes Weighed Down Third-Quarter Results
Deutsche Bank has announced a decline in its net profit for the third quarter, despite a 3% increase in revenue. The German bank reported an attributable net profit of €1.03 billion ($1.09 billion) for the period, compared to €1.12 billion in the same period last year. The bank's revenue rose to €7.13 billion.
The decrease in net profit can be attributed to higher costs and taxes, as the bank's after-tax profit dropped by 3% compared to the previous year. This is reflective of a 30% effective tax rate, which is higher than the 23% rate recorded in the prior year.
Analysts had expected Deutsche Bank to achieve a net profit of €1.07 billion and generate €7.1 billion in revenue for the third quarter, according to a consensus provided by the bank.
Non-interest expenses for the quarter increased by 4% to €5.16 billion compared to the same period last year. These expenses include non-operating costs such as litigation and restructuring charges.
However, Deutsche Bank highlighted that it had managed to reduce its loan loss provisions for the quarter to €245 million, down from €401 million in the previous quarter. The bank also stated that these provisions remain in line with its full-year guidance.
Furthermore, Deutsche Bank reported that it experienced inflows totaling €11 billion across its private bank and asset-management businesses.
Despite the dip in net profit, Deutsche Bank remains committed to improving its financial performance. The bank continues to assess and implement measures to streamline operations and enhance efficiency.