FRANKFURT (Reuters) -Deutsche Bank on Wednesday posted a 7% increase in third-quarter profit, defying expectations for a drop after its global investment banking division generated a chunky increase
Deutsche Bank Surprises with 7% Profit Increase in Q3 Earnings
Deutsche Bank's Q3 Financial Performance
FRANKFURT (Reuters) -Deutsche Bank on Wednesday posted a 7% increase in third-quarter profit, defying expectations for a drop after its global investment banking division generated a chunky increase in revenue. Deutsche, Germany's largest lender, recorded net profit attributable to shareholders of 1.56 billion euros ($1.82 billion) in the quarter, up from a profit of 1.46 billion euros a year earlier and better than analyst expectations for a profit of around 1.34 billion euros.
Overview of Quarterly Results
The figures come in the final stretch as Deutsche winds up a three-year plan and attempts to meet a series of targets that some analysts have doubted it would achieve.
Investment Banking Revenue Growth
"We are on track to deliver on our 2025 financial targets," CEO Christian Sewing said.
Future Financial Targets
The earnings mark a nearly continuous return to quarterly profit over the past five years, making up for years of steep losses, as Sewing sought to stabilize one of the globe's most significant lenders.
The bank's quarterly results are part of a flurry of reports from Europe's biggest banks, as investors search for evidence of how banks are weathering a tepid economy, the strong euro and a trade war.
Deutsche's investment bank, which operates from Sydney to New York, remained the biggest revenue generator in the quarter, with an 18% increase in revenue, surpassing expectations for a 10.8% rise.
Within the investment bank, revenue for fixed-income and currency trading, one of the bank's largest businesses, rose 19%, better than expectations for a 8.1% gain. Such revenue was up 21% at JPMorgan and 17% at Goldman.
Its origination and advisory business, after a bout of weakness, saw an increase of 27%, compared with expectations for a 24.4% rise. Deutsche recently revamped key roles at the division.
($1 = 0.8575 euros)
(Reporting by Tom Sims and Matthias Inverardi; Editing by Kirsti Knolle and Kim Coghill)
