Deutsche Bank Q2 Earnings Rise Y/Y, Expenses & Provision Fall Y/Y

Core Insights - Deutsche Bank reported a significant turnaround in its second-quarter 2025 earnings, achieving a profit of €1.49 billion ($1.75 billion) compared to a loss of $143 million in the same quarter last year [1][9] - The profit before tax reached €2.4 billion ($2.8 billion), a substantial increase from $411 million in the prior-year quarter, with a 34% year-over-year growth when adjusted for prior litigation impacts [2][9] Revenue and Expenses - The bank's net revenues were €7.8 billion ($9.2 billion), reflecting a 3% increase year over year [4] - Non-interest expenses decreased by 26% to €4.9 billion ($5.8 billion) compared to the prior-year quarter, while adjusted non-interest expenses were €5 billion ($5.9 billion), down 1% [4] - Provision for credit losses was €423 million ($498.8 million), marking an 11% decline from the previous year [4] Segment Performance - Corporate Bank reported net revenues of €1.9 billion ($2.2 billion), down 1% year over year due to decreased Business Banking revenues [5] - Investment Bank's net revenues were €2.7 billion ($2.8 billion), up 3% year over year, driven by growth in Fixed Income and Currencies [5] - Private Bank's net revenues increased by 2% to €2.4 billion ($2.8 billion), while Asset Management saw a 9% rise in net revenues to €725 million ($854.9 million) due to higher performance and transaction fees [6] Capital Position - Deutsche Bank's Common Equity Tier 1 capital ratio improved to 14.2% as of June 30, 2025, up from 13.5% in the prior year [7] - The leverage ratio on a fully loaded basis increased to 4.7%, compared to 4.6% in the previous year [7] Strategic Outlook - The company is expected to benefit from a strong balance sheet and a shift towards a capital-light business model, which will support its financial performance [8] - The declining expense base is anticipated to contribute positively to the bank's bottom-line growth [8]