Deutsche Bank have today announced better-than-expected quarterly results despite a decline in its investment banking revenue.
Shares in Germany’s biggest lender had gone up by 2.2 per cent in pre-market trading.
It marks Deutsche’s fourth quarterly profit in a row, its longest streak in the black since 2012.
The net profit attributable to shareholders in the second quarter came in at €692m, almost double the analyst expectations of a profit of €372m.
Deutsche Bank’s results were supported by a decrease in provisions set aside to soften the blow from the pandemic. Provisions for credit losses were €75m, down from €761m a year earlier.
An area of great strength for the bank was its advisory business. Amid a boom in dealmaking, Deutsche saw its advisory revenue surge 166 per cent to €111m.
The profit is good news for CEO Christian Sewing who in 2019 sought to restructure the bank to ensure profitability, one of those measures meant shedding 18,000 staff.
“Our priority now is to continue with our disciplined execution of transformation, quarter by quarter,” Sewing said in a statement.
A lot had been riding on Deutsche Bank’s investment wing, its largest revenue generator since its revamp in 2019. Gains in that area had driven the bank to its strongest quarterly performance in seven years at the start of 2021.
However, it has seen an 11 per cent drop off in the second quarter on the same period a year ago.