Deutsche Bank Turns To Net Profit In Q2, Revenues Down; Updates FY21 View
German banking major Deutsche Bank AG (DB) reported Wednesday that its second-quarter net profit attributable to shareholders 692 million euros, compared to last year’s loss of 77 million euros.
Group profit before tax was 1.17 billion euros, compared to last year’s 158 million euros.
Net revenues of 6.24 billion euros, down 1 percent from 6.29 billion euros a year ago, as markets normalised in the second quarter.
Provision for credit losses was 75 million euros, down 90 percent from 761 million euros in the second quarter of 2020.
Looking ahead for fiscal 2021, Deutsche Bank updated guidance, and now expects net revenues to be ahead of guidance provided at the Investor Deep Dive on December 9, 2020.
Additionally, provision for credit losses is expected to be lower than previous guidance, in a range of around 20 basis points of average loans.
Further, Deutsche Bank reaffirmed its 2022 ratio targets in the light of progress made in its transformation, namely: a post-tax RoTE1 of 8 percent at Group level and over 9 percent for the Core Bank; a cost/income ratio of 70 percent; a Common Equity Tier 1 capital ratio of at least 12.5 percent and a leverage ratio (fully-loaded) of approximately 4.5 percent.