Deutsche Bank beat market expectations to post an eighth straight quarter of profit on Wednesday, recording a second-quarter net income of 1.046 billion euros ($1.06 billion).
The German lender exceeded consensus expectations among analysts aggregated by Refinitiv of a 960.2 million euro profit, and vastly improved on the 692 million euro profit for the same period last year.
Here are some other highlights for the quarter:
- Total revenues stood at 6.6 billion euros, up 7% from 6.2 billion for the same period last year.
- Total expenses were 4.87 billion euros, down 3% from 4.998 billion for the second quarter of 2021.
- Return on tangible equity was 7.9%, up from 5.5% a year ago.
- CET1 capital ratio, a measure of bank solvency, was 13%, up from 12.8% in the first quarter.
“With the best half-year profits since 2011, we have proven – once again – that we can deliver growth and rising profits in a challenging environment,” Deutsche Bank CEO Christian Sewing said in a statement.
“We are particularly pleased with the progress of our Corporate Bank and Private Bank. Thanks to our successful transformation, we’re well on track to deliver sustainable and well-balanced returns through our four strong core businesses.”
Chief Financial Officer James von Moltke also told CNBC on Wednesday that the drivers of profit growth had been strong across the bank’s core businesses.
“That momentum that we talked about last quarter carried through to the second quarter, for sure. Our corporate bank was up 26% year-on-year, driven by not just the interest rate changes but also volume growth, fee income growth,” he said.
“The investment bank performed very well at 11% (growth) and 32% in our FIC (fixed income and currencies) business, so we have been able to navigate these markets, take advantage of the trends.”
Sewing last month dubbed inflation the “biggest poison” for the global economy, and told CNBC that the risk of recession was rising in Germany and further afield.
Image and article originally from www.cnbc.com. Read the original article here.