Deutsche Bank Reports Strong Q2 Performance

​In a recent message to Deutsche Bank colleagues, CEO Christian Sewing highlighted the bank's achievements and addressed the impact of a significant legal provision on the company's Q2 results for 2024. Sewing noted that the past quarter was marked by several key milestones, including the opening of Deutsche Bank's new flagship building in London, successful client conferences, and notable awards such as Euromoney's designation of Deutsche Bank as the world's best bank for corporates.

Despite a reported decrease in profit year-on-year, Sewing emphasized that the decline was primarily due to a €1.3 billion legal provision related to ongoing litigation concerning the 2010 takeover of Postbank. This provision was recorded following indications from the Higher Regional Court that elements of the litigation claims may be valid, although Deutsche Bank strongly disagrees with this assessment. Adjusted for this legal provision, the bank achieved a pre-tax profit of €1.7 billion, marking its best second-quarter performance in 13 years.

Deutsche Bank's revenue increased by 2% year-on-year to €7.6 billion, reflecting growth in commission and fee income, which rose by more than 10%. The bank also saw stable net interest income in its core businesses. Noteworthy progress was made in areas where recent investments have been concentrated, including the Corporate Bank's multinational client segment and the Investment Bank's Origination & Advisory business, where revenues doubled. Additionally, the digitization of the private client business has led to a significant rise in online banking logins and digital account openings.

Sewing expressed optimism about the future, highlighting the bank's goal to generate approximately €30 billion in revenues for the full year and achieve a post-tax return on tangible equity (RoTE) of above 10% by the end of 2025.