Deutsche Bank Q3 Earnings Rise Y/Y, Provisions Decline Y/Y

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]