Financial Data and Key Metrics Changes - The company reported record profitability in the first nine months of 2025, with revenues of €24.4 billion, aligning with the full-year goal of around €32 billion before FX effects [4][10] - Adjusted costs were €15.2 billion, consistent with guidance, and the post-tax return on tangible equity was 10.9%, meeting the full-year target of above 10% [4][10] - The cost-to-income ratio stood at 63%, in line with the target of below 65%, and the CET1 ratio rose to 14.5% due to organic capital generation [4][10] Business Line Data and Key Metrics Changes - The Corporate Bank achieved a post-tax return on tangible equity of 16.2% and a cost-to-income ratio of 63%, with revenues remaining flat year-on-year [19] - The Investment Bank saw revenues increase by 18% year-on-year, driven by strong performance in FIC and O&A, with FIC revenues up 19% [21] - The Private Bank's profits before tax doubled, with a 13% operating leverage and a return on tangible equity of 12.6% [23] - Asset Management reported a 42% increase in profit before tax, with revenues up 11% and assets under management growing to €1.05 trillion [25][26] Market Data and Key Metrics Changes - The company noted a strong liquidity coverage ratio of 140% and a net stable funding ratio of 119% [12] - The tax rate for the third quarter was 26%, benefiting from a reduction in deferred tax liabilities due to changes in the German corporate tax rate [13] Company Strategy and Development Direction - The company is on track to meet or exceed all 2025 strategic goals, with a compound annual revenue growth of 6% since 2021 [7][10] - The company launched a second share buyback program of €250 million, bringing total buybacks in 2025 to €1 billion, with a commitment to exceed €8 billion in distributions from 2022 to 2026 [8][28] - The company is optimistic about benefiting from German fiscal stimulus and structural reforms, expecting Germany to grow by 1.5% in 2026 [10][39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 2025 targets, citing strong performance in the first nine months and a positive outlook for Q4 [33][34] - The company anticipates lower provisioning levels in the second half of the year compared to the first half, with a resilient credit portfolio [16][28] - Management highlighted the importance of operational efficiencies and a well-diversified earnings mix in navigating the current geopolitical uncertainties [7][10] Other Important Information - The company completed its share buyback program and reported total capital distributions in 2025 reaching €2.3 billion, up around 50% over 2024 [8][10] - The company is actively monitoring risks from private credit, which accounts for about 5% of the loan book, and maintains conservative underwriting standards [16][47] Q&A Session Summary Question: Thoughts on achieving 2025 targets and Q4 expectations - Management expressed high confidence in achieving 2025 targets, with a strong start in October and solid visibility for Q4 [33][34] Question: Benefits from German fiscal stimulus - Management reiterated optimism about the German government's growth agenda and ongoing discussions about deploying fiscal stimulus effectively [39][40] Question: Outlook on private credit and risks - Management acknowledged spread compression in private credit but sees opportunities for innovation and growth, maintaining a disciplined approach [47][48] Question: Capital distribution plans for next year - Management confirmed expectations for two buybacks next year, with a focus on distributing excess capital sustainably [55][56] Question: Operational risk update and corporate bank revenue expectations - Management clarified that operational risk updates are now a permanent feature, and they expect a rebound in corporate bank revenues in Q4 [65][66]