Financial Data and Key Metrics Changes - Record profitability was achieved in the first nine months of 2025, with revenues at EUR 24.4 billion, aligning with the full year goal of around EUR 32 billion before FX effects [3] - Adjusted costs remained consistent with guidance, with a post-tax return on tangible equity of 10.9%, meeting the target of above 10% [3][4] - The cost-income ratio stood at 63%, consistent with the target of below 65% [3] - Pre-provision profit increased to EUR 9 billion, up nearly 50% year on year, or nearly 30% when adjusted for Postbank litigation impacts [3] Business Line Data and Key Metrics Changes - Net commission and fee income rose by 5% year on year, while net interest income across key banking segments remained stable [4] - All four business lines delivered double-digit profit growth and return on tangible equity in the first nine months [6] - The Corporate Bank saw strong fee growth of 5% and was recognized as the best trade finance bank [7] - The Private Bank's profits surged by 71%, and assets under management in Wealth Management grew by EUR 40 billion year to date [7] Market Data and Key Metrics Changes - Loans grew by EUR 3 billion adjusted for FX effects during the third quarter, with strong underlying quality [9] - The deposit book expanded by EUR 10 billion in the third quarter, with significant growth in the Private Bank [10][11] - The liquidity coverage ratio was managed to 140%, demonstrating the strength of the balance sheet [11] Company Strategy and Development Direction - The company is on track to meet or exceed all 2025 strategy goals, with a compound annual revenue growth rate of 6% since 2021 [4][5] - Operational efficiencies of EUR 2.4 billion have been delivered or are expected, nearing the EUR 2.5 billion goal [5] - A second share buyback program of EUR 250 million was launched, bringing cumulative distributions since 2022 to EUR 5.6 billion [5] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a return on tangible equity above 10% and a cost-income ratio below 65% for the full year [17] - Despite uncertainties in commercial real estate and the macroeconomic environment, lower provisioning levels are anticipated in the second half of the year [17] - The company remains focused on growing its franchise and expanding market share, particularly in the Corporate Bank [10] Other Important Information - The CET1 ratio increased to 14.5%, with a surplus above regulatory requirements [12][14] - The MREL surplus increased by EUR 2 billion to EUR 26 billion, providing flexibility for future issuance [15][16] Q&A Session Summary Question: Future Return on Tangible Equity - Management indicated that a 10% return on tangible equity could be a reasonable floor for future performance, emphasizing structural profitability improvements [20][21] Question: Private Credit and Commercial Real Estate Exposures - Management noted that private credit is not a concern, while commercial real estate remains a watch item, particularly in California and Washington State [22][23] Question: Receivables Financing Exposure - Management acknowledged some exposure in trade finance and ABS but emphasized it is not significant [28][29] Question: Tier 2 Capital Stack - Management confirmed that Tier 2 instruments remain valuable, but the focus has been on Tier 1 capital needs [32] Question: Sustainability Competitive Disadvantage - Management does not view the sustainability landscape in Europe as a competitive disadvantage, highlighting progress in their sustainability agenda [30][31] Question: Commercial Real Estate Issues - Management detailed that issues are concentrated in West Coast exposures, with ongoing efforts to work with sponsors for value preservation [36][39]

Financial Data and Key Metrics Changes - Record profitability was achieved in the first nine months of 2025, with revenues at €24.4 billion, aligning with the full-year goal of around €32 billion before FX effects [3] - Post-tax return on tangible equity reached 10.9%, meeting the target of above 10%, while the cost-income ratio stood at 63%, consistent with the target of below 65% [3] - Pre-provision profit increased to €9 billion, up nearly 50% year on year, or nearly 30% when adjusted for Postbank litigation impacts [3][4] Business Line Data and Key Metrics Changes - Net commission and fee income rose by 5% year on year, while net interest income across key banking segments remained stable [4] - The Corporate Bank delivered strong fee growth of 5% and was recognized as the best trade finance bank [6] - The Private Bank saw profits increase by 71%, and assets under management grew by €40 billion year to date with net inflows of €25 billion [7] Market Data and Key Metrics Changes - Loans grew by €3 billion adjusted for FX effects during the third quarter, with strong underlying quality [9] - Deposit growth was pronounced in the Private Bank, with an increase of €10 billion during the third quarter [10][11] - The liquidity coverage ratio was managed to 140% at quarter end, demonstrating the strength of the balance sheet [12] Company Strategy and Development Direction - The company is on track to meet or exceed all 2025 strategy goals, with a compound annual revenue growth rate since 2021 of 6% [5] - Operational efficiencies of €2.4 billion have been delivered or are expected, achieving 95% of the €2.5 billion goal [5] - A second share buyback program of €250 million was launched, bringing cumulative distributions since 2022 to €5.6 billion [5] Management's Comments on Operating Environment and Future Outlook - Management anticipates lower provisioning levels in the second half of the year despite uncertainties in the commercial real estate sector [17] - The company expects lending in the core bank to benefit from fiscal stimulus in Germany, with a strong outlook in FICC [10] - Geopolitical risks are continuously monitored, with stress testing for potential events being an ongoing focus [24] Other Important Information - The CET1 ratio increased to 14.5%, with a surplus above regulatory requirements [12][14] - The company has reached the lower end of its full-year issuance guidance with €15.1 billion issued year-to-date [16] Q&A Session Summary Question: Future Return on Tangible Equity - Management believes that a 10% return on tangible equity could be a reasonable floor for future performance, indicating structural profitability has improved [20][22] Question: Private Credit and Commercial Real Estate Exposures - Management noted that private credit is not a concern, while commercial real estate remains a watch item, particularly in California and Washington State [20][24] Question: Receivables Financing Exposure - The company has some exposure in trade finance and supply chain financing, but it is not considered significant [27][29] Question: Sustainability Competitive Disadvantage - Management does not view the sustainability landscape in Europe as a competitive disadvantage, highlighting progress in their sustainability agenda [27][30] Question: Tier 2 Capital Stack - The company maintains a Tier 2 deficit offset by a surplus in AT1, with no immediate changes expected in the capital stack approach [27][32] Question: Commercial Real Estate Issues - Concentration of credit loss provisions has been primarily in West Coast exposures, with ongoing efforts to manage and restructure troubled loans [34][36] Question: Off-Balance Sheet Positions - Off-balance sheet positions primarily consist of derivatives and committed facilities, with a significant bias towards stages one and two [34][39]

Financial Data and Key Metrics Changes - Record profitability was achieved in the first nine months of 2025, with revenues at €24.4 billion, aligning with the full-year goal of around €32 billion before FX effects [3] - Post-tax return on tangible equity reached 10.9%, meeting the full-year target of above 10%, while the cost-income ratio stood at 63%, consistent with the target of below 65% [3][4] - Pre-provision profit was €9 billion, up nearly 50% year on year, or nearly 30% when adjusted for Postbank litigation impacts [3][4] Business Line Data and Key Metrics Changes - Net commission and fee income increased by 5% year on year, while net interest income across key banking book segments remained stable [4] - The Corporate Bank reported strong fee growth of 5% and was recognized as the best trade finance bank [6] - The Private Bank saw profits increase by 71% year to date, with assets under management growing by €40 billion and net inflows of €25 billion [6][7] Market Data and Key Metrics Changes - Loans grew by €3 billion in the third quarter, adjusted for FX effects, with strong underlying quality [9] - Deposit growth was pronounced in the private bank, with an increase of €10 billion during the third quarter [10][11] - The liquidity coverage ratio was managed to 140% at quarter end, demonstrating the strength of the balance sheet [12] Company Strategy and Development Direction - The company is on track to meet or exceed all 2025 strategy goals, with a compound annual revenue growth rate since 2021 of 6% [5] - Operational efficiencies of €2.4 billion have been delivered or are expected, achieving 95% of the €2.5 billion goal [5] - A second share buyback program of €250 million was launched, bringing cumulative distributions since 2022 to €5.6 billion [5] Management's Comments on Operating Environment and Future Outlook - Management anticipates lower provisioning levels in the second half of the year despite uncertainties in commercial real estate and the macroeconomic environment [17] - The company expects lending in the core bank to benefit from fiscal stimulus in Germany, with a strong outlook in FICC [10][17] - Management remains confident in achieving a return on tangible equity above 10% and a cost-income ratio below 65% for the full year [17] Other Important Information - The CET1 ratio increased to 14.5%, with a surplus above regulatory requirements [12][13] - The company has maintained a high-quality liquidity buffer, holding about 95% of HQLA in cash and Level 1 securities [12] Q&A Session Summary Question: Future Return on Tangible Equity - Management believes that a 10% return on tangible equity could be a reasonable floor for future performance, indicating structural profitability has improved [20][21] Question: Private Credit and Commercial Real Estate Exposures - Management noted that private credit is not a concern but remains a watch item, while commercial real estate continues to be a soft spot, particularly in California and Washington State [23][39] Question: Receivables Financing Exposure - The company engages in trade finance and supply chain financing, but it does not consider receivables financing to be a significant exposure [29] Question: Sustainability and Competitive Disadvantage - Management does not view the sustainability landscape in Europe as a competitive disadvantage, citing progress in their sustainability agenda and improved ESG ratings [30] Question: Tier 2 Capital Stack - The company maintains a Tier 2 deficit offset by a surplus in AT1, with no immediate plans to change this approach [34]

Group 1 - Deutsche Bank's U.S. distressed asset trading division achieved approximately $200 million in profit for the three months ending September 30, marking a historic high for the bank in Q3 [1] - The division has generated around $300 million in profit year-to-date, representing its best performance in over a decade, driven primarily by trading in EchoStar's stock and convertible bonds following multiple spectrum rights sales [1] - The bank's fixed income trading division saw a 19% year-on-year revenue increase to €2.48 billion ($2.88 billion) in Q3, indicating a significant recovery in credit trading, including distressed asset products [1] Group 2 - The U.S. team, consisting of about 20 members, has been led by CJ Lanktree since 2023, who previously co-led the division from 2003 to 2012 before working at Solus Alternative Asset Management [2] - The division focuses on holding controlling positions in distressed credits to facilitate restructuring processes and influence outcomes [3] - Deutsche Bank played a leading role in MSG Networks' refinancing transaction, helping the company avoid potential bankruptcy and reduce approximately $600 million in debt [3]

1. Report Industry Investment Rating - No information provided in the content. 2. Core Viewpoints of the Report - Among overseas bank bonds, ordinary bank bonds have the largest outstanding volume, while AT1 and AT2 are subordinated bonds with higher yields. Subordinated bonds have had many credit risk events in history, reshaping the research framework and pricing for institutional investors. Ordinary bank bonds are mainly investment - grade, and their pricing is more affected by liquidity premium, while subordinated bonds are more affected by credit risk premium. In the future, considering the overall stable fundamentals of banks and the interest - rate cut cycle, opportunities for yield decline in medium - and short - duration ordinary bonds and subordinated bonds can be focused on. Chinese banks' overseas bonds, mainly US - dollar ordinary bonds issued by large banks, have higher coupons than domestic bonds, presenting allocation opportunities [1]. 3. Summary by Relevant Catalogs 3.1 Overseas Bank Bond Overview - **Types and Attributes**: Overseas bank bonds mainly include ordinary bank bonds, TLAC non - capital instruments, AT2, and AT1 bonds. Ordinary bank bonds have the best repayment order and are used to supplement general operating funds. TLAC non - capital instruments help global system - important banks meet TLAC regulatory indicators. AT1 and AT2 are used to supplement a bank's primary and secondary capital respectively, with subordinated, redemption, write - down, or conversion clauses [12]. - **Outstanding Amount**: As of October 20, the outstanding amounts of ordinary bank bonds, TLAC non - capital instruments, AT2, and AT1 bonds were 6.4, 2.0, 0.8, and 0.5 trillion US dollars respectively [2]. - **Ordinary Bank Bonds**: They are denominated mainly in euros, with the largest outstanding volume. European countries dominate in terms of issuance, and Germany has the largest outstanding amount. From 2010 - 2025, the overall issuance scale declined, and the financing situation shifted from net repayment to mild net financing. The issuance term is mainly 1 - 7 years, and the rated bonds are mainly of A grade. The lower the rating, the higher the interest rate [18][22][30]. - **AT1 Bonds**: They are denominated mainly in US dollars, with the largest outstanding amounts in the UK and the US. The market expanded significantly after 2014 and has developed steadily since then. The net financing amount has changed with the market rhythm. The issuance coupon is affected by the interest - rate environment and credit risk events. Bonds with ratings are mainly of Ba1 grade, and the lower the rating, the higher the coupon [35][40][52]. - **AT2 Bonds**: They are mainly issued by France, the US, etc., and are denominated mainly in US dollars, euros, and Australian dollars. The issuance scale fluctuated greatly from 2010 - 2025, mainly affected by the interest - rate cycle. The net financing amount has been mainly positive but showed a downward trend. Rated bonds are mainly of Baa1 grade, and the lower the rating, the higher the interest rate [54][59][66]. - **Chinese Banks' Overseas Bonds**: As of October 21, the outstanding amount was 7.6 billion US dollars, mainly ordinary bank bonds. US dollars are the main currency, and most of the rated bonds have high credit ratings. The financing rhythm is significantly affected by cost, and the net financing amount has been negative since 2022 [69][70]. 3.2 Review and Enlightenment of Credit Risks of Overseas Subordinated Bank Bonds - **Deutsche Bank's Interest Payment Risk in 2016**: The huge loss in 2015 led to concerns about its AT1 bond interest payment ability, causing a sharp decline in the European bank AT1 market. After Deutsche Bank announced a bond repurchase, market sentiment eased [83]. - **Deutsche Bank's Non - Redemption Cases in 2020 and 2025**: In 2020, it was due to the lower reset coupon compared to the refinancing cost; in 2025, it was to reduce exchange losses. Non - redemption may send a negative signal to the market [90][91]. - **UBS's Full Write - down of Credit Suisse's AT1 Bonds in 2023**: This event violated the traditional "debt before equity" repayment order, causing market concerns. It highlighted the importance of the "write - down clause" in AT1 bonds, regulatory powers, and regulatory differences [101][103][111]. - **Banco Popular Español's Case in 2017**: The bank's financial situation deteriorated rapidly. After being recognized as "failing or likely to fail" by the ECB, its AT1 bonds were first converted into shares and then fully written down, revealing the risk of regulatory judgment [112][115][118]. - **Banca Monte dei Paschi di Siena's Case in 2017**: After multiple self - rescue failures, the Italian government intervened. As a condition for state aid, the bank's AT1 bonds were forcibly converted into common shares, indicating that subordinated creditors will bear losses first in case of government assistance [119][123][124]. - **Bank of Jinzhou's Interest Payment Cancellation in 2019**: The direct reason was that the capital adequacy ratio did not meet regulatory requirements. After the cancellation, the bond price dropped, and it affected investors' confidence in other small and medium - sized Chinese banks' AT1 bonds [125][129]. 3.3 Pricing of Overseas Bank Bonds - **Pricing Drivers**: The pricing of overseas bank bonds is driven by the benchmark interest rate and credit spread. The spread of bank subordinated bonds is mainly affected by risk events, while that of ordinary bank bonds is dominated by liquidity premium [134]. - **Spread Composition**: The bank bond spread consists of liquidity premium and credit risk premium. Subordinated bonds such as AT1 and AT2 have a variety premium compared to ordinary bank bonds, which is an important part of the credit risk premium. Internationally, the spread between AT1, AT2, and ordinary bank bonds is larger, and AT1 is often classified as high - yield bonds [134].

Core Viewpoint - Axonic Insurance has secured a $210 million preferred equity investment led by LuminArx Capital Management, with participation from Deutsche Bank, indicating strong investor confidence in the company's innovative insurance platform [1] Company Overview - Axonic Insurance is a global annuity and insurance platform that designs, distributes, issues, and manages annuity and related product offerings for individual consumers and institutions worldwide [1] - The company was launched in 2024, positioning itself as an innovative player in the insurance industry [1] Investment Details - The investment amount is $210 million, which is significant for the growth and expansion of Axonic Insurance [1] - LuminArx Capital Management, a global capital solutions provider, is the lead investor in this funding round [1] - Deutsche Bank also participated in this investment, further validating the potential of Axonic Insurance [1]

Core Points - Deutsche Bank has announced a decrease in its prime lending rate from 7.25% to 7.00%, effective October 30, 2025 [1] Company Overview - Deutsche Bank offers a range of financial services including commercial and investment banking, retail banking, transaction banking, and asset and wealth management [1]

Core Insights - Deutsche Bank reported third-quarter 2025 earnings attributable to shareholders of €1.56 billion ($1.82 billion), reflecting a 7% year-over-year increase [1] - The bank achieved a record profit before tax of €2.4 billion ($2.8 billion), up 8% from the previous year, with a 34% increase when excluding the positive impact from litigation provisions [1][8] Revenue and Expenses - Deutsche Bank generated net revenues of €8 billion ($9.4 billion), marking a 7.2% increase year over year [3] - Non-interest expenses rose to €5.2 billion ($6 billion), up 9.2% from the prior-year quarter, while adjusted non-interest expenses decreased slightly to €5 billion ($5.8 billion) [3] - Provision for credit losses was €417 million ($486 million), down 15.5% from the prior-year quarter [3] Segment Performance - Corporate Bank reported net revenues of €1.8 billion ($2.1 billion), down 1.4% year over year due to declines in Institutional Client Services and Business Banking revenues [4] - Investment Bank's net revenues increased to €2.9 billion ($3.5 billion), up 18% year over year, driven by growth in Fixed Income, Currencies, and Equity Origination & Advisory [4] - Private Bank's net revenues were €2.4 billion ($2.8 billion), up 4.1% year over year, while Asset Management saw net revenues rise to €734 million ($855.5 million), an 11.2% increase [5] - Corporate & Other segment reported net revenues of €99 million ($115.4 million), down 36.9% from the prior-year quarter [5] Capital Position - Deutsche Bank's Common Equity Tier 1 capital ratio improved to 14.5% as of September 30, 2025, up from 13.8% in the previous year [6] - The leverage ratio remained stable at 4.6% on a fully loaded basis compared to the prior year [6] Overall Assessment - The company's strong balance sheet and shift towards a capital-light business model are expected to support financial performance [7] - However, the elevated expense base may negatively impact bottom-line growth [7]

Core Insights - Deutsche Bank reported quarterly earnings of $0.97 per share, exceeding the Zacks Consensus Estimate of $0.81 per share, and up from $0.89 per share a year ago, representing an earnings surprise of +19.75% [1] - The bank's revenues for the quarter ended September 2025 were $9 billion, surpassing the Zacks Consensus Estimate by 0.40%, and up from $8.24 billion year-over-year [2] - Deutsche Bank shares have increased approximately 102.4% year-to-date, significantly outperforming the S&P 500's gain of 17.2% [3] Earnings Outlook - The company's earnings outlook is crucial for assessing future stock performance, including current consensus earnings expectations for upcoming quarters [4] - The current consensus EPS estimate for the next quarter is $0.71 on revenues of $8.9 billion, and for the current fiscal year, it is $3.47 on revenues of $36.94 billion [7] Industry Context - The Zacks Industry Rank places Banks - Foreign in the top 39% of over 250 Zacks industries, indicating a favorable outlook for the sector [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5][6]

Core Viewpoint - Deutsche Bank's stock rose over 6%, closing at $36.61, following strong third-quarter earnings that exceeded market expectations [1] Financial Performance - Deutsche Bank reported total revenue of €8.04 billion for the third quarter, representing a year-on-year increase of 7.2% [1] - The net profit attributable to shareholders was €1.56 billion, a nearly 7% increase compared to the previous year, significantly above the market expectation of €1.34 billion [1] Business Segment Performance - The investment banking division's revenue grew by 18% year-on-year, surpassing the market expectation of 10.8% [1]