Log in
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 

MarketScreener Homepage  >  Indexes  >  Xetra  >  DAX    DAX   DE0008469008


SummaryMost relevantAll NewsNews of the index componentsMarketScreener Strategies

Investment bank lifts Deutsche to surprise third-quarter profit

10/28/2020 | 07:35am EST
FILE PHOTO: Germany's Deutsche Bank headquarters are pictured in Frankfurt

FRANKFURT (Reuters) - Deutsche Bank AG, Germany's largest lender, reported a surprise return to a third-quarter net profit and upgraded its annual outlook for investment banking revenue, as it navigates a restructuring and the coronavirus pandemic.

The lender's investment banking division, which has long been a drag on earnings, is proving a bright spot as market volatility spurs trading. Deutsche's top executives said the revenue is expected to slow in the months ahead, but that the division will hold on to some recent market share gains.

"We see our revenue growth in the investment bank as much more than just market driven," Chief Executive Officer Christian Sewing told analysts.

The bank turned in a profit attributable to shareholders of 182 million euros ($215 million) for July-September, versus a loss of 942 million euros a year earlier. Deutsche last reported a quarterly profit in January-March 2019.

JPMorgan, which had projected a quarterly loss, called the results a "positive surprise."

Deutsche shares were up 1.9%, reversing earlier losses and were one of a few gainers in the DAX index of bluechips.

Analysts at Citi said it was a good set of results but that they remain sellers of Deutsche Bank's stock because "the investment bank industry backdrop is unlikely to be as supportive" for Deutsche in 2021.

Alexandra Annecke, portfolio manager at Deutsche shareholder Union Investment, said the road to adequate returns and attractive dividends "is still long."


Deutsche has lost money for the past five years and has been trying to reverse its fortunes through an overhaul by shedding staff and cutting costs. It has exited some unprofitable businesses, particularly in the investment bank, to allow it to focus on strengths like bond trading.

The bank has hoped to lean more heavily on its divisions serving private customers and corporations, and less on the investment bank, but revenue growth has stagnated amid the pandemic, low interest rates and fierce competition.

Analysts say the overhaul is starting to show results, but uncertainties stemming from the health crisis remain.

For the quarter just ended, Deutsche's revenue climbed 43% at the investment bank, boosted by a 47% rise in fixed income and currencies. In comparison, investment banking revenue at U.S. banks rose 21% in the quarter, analysts at Barclays said in a research note.

Andreas Thomae, a portfolio manager at Deka, an investor in Deutsche, said it was good to see the bank had won market share from its U.S. peers.

Deutsche said it expected "significantly higher" revenue at the investment bank for 2020, versus prior guidance of "higher."

The bank's executives said they were monitoring how credit losses accumulate after government measures to help businesses and consumers through the pandemic begin to taper off.

Later in the day, German Chancellor Angela Merkel is due to hold high-level talks to decide on new restrictions to break a second wave of coronavirus infections.

(Reporting by Tom Sims, Patricia Uhlig and Hans Seidenstuecker; Additional reporting by Douglas Busvine; Editing by Himani Sarkar and Jane Merriman)

By Tom Sims and Patricia Uhlig

© Reuters 2020
Stocks mentioned in the article
ChangeLast1st jan.
DAX -0.28% 13265.95 Delayed Quote.0.33%
DEUTSCHE BANK AG -1.65% 9.506 Delayed Quote.39.12%
JPMORGAN CHASE & CO. 4.62% 121.45 Delayed Quote.-15.44%
All news about DAX
07:16aNEWS HIGHLIGHTS : Top Financial Services News of the Day
02:37aFLIRTING WITH RECORD HIGHS : European stocks back to normal in 2021 - Reuters po..
12:17aNEWS HIGHLIGHTS : Top Financial Services News of the Day
11/24NEWS HIGHLIGHTS : Top Global Markets News of the Day
11/24NEWS HIGHLIGHTS : Top Global Markets News of the Day
11/24NEWS HIGHLIGHTS : Top Financial Services News of the Day
11/24NEWS HIGHLIGHTS : Top Global Markets News of the Day
11/24NEWS HIGHLIGHTS : Top Global Markets News of the Day
11/24NEWS HIGHLIGHTS : Top Financial Services News of the Day
11/24NEWS HIGHLIGHTS : Top Global Markets News of the Day
More news
News of the index components DAX
07:57aSIEMENS AG : HSBC reiterates its Buy rating
07:36aADIDAS : Bank of America sticks Neutral
07:31aSIEMENS : Deutsche Bahn and Siemens Mobility to develop new hydrogen train
07:21aRWE : European Commissions approves German hard coal exit tender
06:57aSIEMENS AG : UBS reiterates its Buy rating
06:52aSIEMENS AG : Jefferies gives a Buy rating
06:11aAN INTERVIEW WITH MAXIMILIAN GÜNTHER : “We have all the ingredients for ac..
More news
Chart DAX
Duration : Period :
DAX Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends DAX
Short TermMid-TermLong Term
Top / Flop DAX
DELIVERY HERO SE 98.17 Real-time Estimate Quote.3.38%
E.ON SE 9.135 Real-time Estimate Quote.1.91%
VONOVIA SE 55.82 Real-time Estimate Quote.1.90%
DEUTSCHE TELEKOM AG 15.123 Real-time Estimate Quote.1.87%
DEUTSCHE BÖRSE AG 134.575 Real-time Estimate Quote.1.76%
BASF SE 60.135 Real-time Estimate Quote.-1.66%
BMW AG 75.34 Real-time Estimate Quote.-1.75%
MUENCHENER RUECKVERSICHERUNG AG 237.75 Real-time Estimate Quote.-2.04%
ADIDAS AG 273.35 Real-time Estimate Quote.-2.10%
VOLKSWAGEN AG 152.15 Real-time Estimate Quote.-2.47%
Heatmap :