Deutsche Bank Q2 Results While Barclays Beats Estimates

Deutsche Bank reports Q2 results

  • Deutsche Bank (NYSE:DB): Q2 GAAP EPS of €0.20.
  • Revenue of €6.24B (-0.8% Y/Y) beats by €310M.
  • Common equity Tier 1 ratio 13.2%, estimate 13.1%.
  • Provision for credit losses of €75M, down 90% compared to €761M in Q2 2020.
  • Deutsche Bank reaffirmed its 2022 ratio targets in the light of progress made in its transformation, namely:
  • A post-tax RoTE of 8% at Group level and over 9% for the Core Bank;
  • A cost/income ratio of 70%;
  • A Common Equity Tier 1 capital ratio of above 12.5% and a leverage ratio (fully-loaded) of ~4.5%.
  • DB will no longer disclose an absolute cost target for 2022, which it had previously put at €16.7B, as it focuses on the cost/income ratio.

Barclays beats revenue, operating income estimates; FY21 CET1 ratio expected above 13-14%

  • Barclays (NYSE:BCS): Q2 GAAP EPS of 12.3p.
  • Total Income of £5.42B (+1.5% Y/Y) beats by £100M.
  • CET1 ratio 15.1%, estimate 14.8%.
  • Net interest income £2.05B, estimate £2.01B.
  • Net operating income £6.21B, Bloomberg estimate £5.37B.
  • Outlook: FY21 CET1 ratio is expected to remain above the target range of 13-14%.
  • BCS expects to deliver a RoTE above 10% in 2021 and Cost: income ratio below 60%.
  • The impairment run rate is expected to remain below historical levels in coming quarters given reduced unsecured lending balances and improved macroeconomic outlook.

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