Deutsche Bank Q2 Highlights: 11% Revenue Growth, Expects Buyback & Dividends Of €1B In 2023

Deutsche Bank AG DB reported Q2 2023 revenue growth of 11% Y/Y to €7.41 billion.

Corporate Bank net revenues increased 25% Y/Y to €1.94 billion on strong net interest income and continued pricing discipline, and Private Bank revenues rose 11% Y/Y to €2.4 billion on higher revenues from deposit products.

Investment Bank net revenues declined 11% Y/Y to €2.4 billion, mainly on lower Fixed Sales & Trading revenues (-10% Y/Y), and Asset Management revenues were down 6% Y/Y, reflecting a decline in management fees (-6% Y/Y). 

Noninterest expense grew 15% Y/Y to €5.60 billion on higher nonoperating costs.

Provision for credit losses stood at €401 million (up from €372 million in Q2 2022) amid a challenging environment.

Profit attributable to shareholders stood at €763 million, down 27% Y/Y.

Common Equity Tier 1 capital ratio improved to 13.8%, up from 13.6% in Q1 2023, above the 2025 capital objective of around 13%.

At the end of Q2, liquidity reserves stood at €244 billion, up from €241 billion at the end of Q1 2023, including high-quality assets of €204 billion.

Global Hausbank strategy: DB continues to target incremental operational efficiencies of €2.5 billion annually by 2025.  

By the end of H1 2023, the company achieved around €1 billion in efficiencies.

DB also reiterated its plan to reduce €15 billion-€20 billion risk-weighted assets in lower yield portfolios by 2025.

Shares Repurchase: In July, DB received supervisory approvals for further share buyback of up to €450 million by the end of 2023. 

The bank expects to start these repurchases in August. 

DB expects share repurchases and dividends of over €1 billion in 2023, bringing total distributions of around €1.75 billion over 2022 and 2023.

Also Read: Deutsche Bank Fined For Money Laundering Control Failures: Federal Reserve Slaps Penalty Of $186M

Price Action: DB shares are trading lower by 1.81% at $11.40 premarket on the last check Wednesday.