Deutsche Bank AG(US:DB)2025-10-30 15:00Financial 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]