Deutsche Bank’s net profit falls 8 percent in third quarter

FRANKFURT

Deutsche Bank yesterday announced its third-quarter net profit fell 8 percent year on year to 1.03 billion euros ($1.09 billion), blaming higher tax rates.

But operating profits before taxes at Germany's largest bank were up 7 percent to compared to the third quarter of 2022 to 1.72 billion euros, making it "the highest for any third quarter since 2006," it said.

Net revenue rose by 3 percent to 7.1 billion euros despite a 4-percent drop from investment banking, which was hit by a drop in trading at its bond and currency unit, usually a strong performer.

"These results demonstrate strong and sustained business growth momentum combined with continued cost discipline," said chief executive Christian Sewing.

"Furthermore, we have materially improved our capital outlook thanks to our strong results and focused capital efficiency measures," he added.

Earlier this year Deutsche Bank launched a new effort to cut costs and focus on its core strengths after finally having gotten back on its feet after years of scandals.

It aims to reduce costs by 2.5 billion euros by 2025, including by closing bank branches and modernising its IT systems.

The bank managed 1 billion in cost savings in the first half of 2023.

But the restructuring and litigation weighed on costs, which rose by 4 percent.