Deutsche Bank's Q3 Earnings Rise Y/Y, Stock Slips on Provision Hike

Deutsche Bank DB reported third-quarter 2024 earnings attributable to its shareholders of €1.5 billion ($1.6 billion), up 41.7% year over year.Find the latest earnings estimates and surprises on the Zacks Earnings Calendar.The Germany-based lender reported a profit before tax of €2.3 billion ($2.4 billion), up 31.2% year over year. Third-quarter profit growth was driven by approximately €440 million ($474.4 million) partial release of Postbank-related litigation provisions.Excluding Postbank-related litigation release, profit before tax of €1.8 billion ($1.9 billion) increased 6% year over year.Results were positively impacted by solid growth in Investment Bank revenues and the partial release of Postbank-related litigation provisions. However, DB has increased its provision of credit loss forecast for 2024. This led investors to turn bearish on the stock, resulting in a fall of 1.4%.Deutsche Bank’s Revenues & ExpensesThe bank generated net revenues of €7.5 billion ($8.1 billion), up 5% year over year. This upside was primarily driven by strong growth in commissions and fee income, and broadly stable net interest income.Non-interest expenses of €4.7 billion ($5.1 billion) declined 8% from the prior-year quarter. Provision for credit losses was €494 million ($474.9 million), significantly up from €245 million ($264.1 million) in the prior-year quarter.DB’s Segmental PerformanceCorporate Bank: Net revenues for the segment were €1.8 billion ($1.9 billion), down 3% year over year. The results were hurt by lower net interest income, a decline in loan net interest income, and a decrease in Corporate Treasury Services and Business Banking revenues.Investment Bank: This segment’s net revenues totaled €2.5 billion ($2.7 billion), up 11% year over year. The upside was primarily driven by growth across Fixed Income and Currencies, and Origination & Advisory.Private Bank: Net revenues of €2.3 billion ($2.5 billion) were essentially flat year over year. This reflects an increase in Wealth Management & Private Banking revenues, and lower revenues in Personal Banking.Asset Management: Net revenues of €660 million ($711.5 million) rose 11% year over year. An increase in management fees led to the rise.Corporate & Other: The segment reported net revenues of €157 million ($169.2 million), up from €35 million ($37.7 million) a year ago.Deutsche Bank’s Capital PositionDB’s Common Equity Tier 1 capital ratio was 13.8% as of Sept. 30, 2024, down from the year-ago quarter’s 13.9%.The leverage ratio on a fully loaded basis was 4.6%, down from the year-ago quarter's 4.7%.DB’s 2024 OutlookDeutsche Bank’s revenue trajectory is on track to meet the €30 billion ($32.3 billion) target for 2024, supported by momentum in all businesses.Provision for credit losses is projected to be €1.8 billion ($1.9 billion), up from the €1.5 billion ($1.6 billion) reported in 2023.Our Viewpoint on Deutsche BankDB’s revenues improved from the prior-year quarter, driven by strong growth in Asset Management and Investment Bank segments. The bank’s rise in commissions and fee income is another positive. A decline in reserves for Postbank lawsuits is likely to support financials in the upcoming period. However, a rise in provision for credit losses is concerning.Deutsche Bank Aktiengesellschaft Price, Consensus and EPS Surprise  Deutsche Bank Aktiengesellschaft price-consensus-eps-surprise-chart | Deutsche Bank Aktiengesellschaft QuoteThe company currently has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.Earnings Release Dates of Other Foreign BanksMacro Bank BMA is scheduled to release third-quarter 2024 results on Nov. 27.The Zacks Consensus Estimate for BMA’s quarterly earnings has been unchanged at $2.64 per share over the past 7 days. The estimate indicates a significant surge from the prior-year quarter’s reported earnings of 33 cents.UBS Group AG UBS is expected to report third-quarter 2024 results on Oct. 30.Over the past seven days, the Zacks Consensus Estimate for UBS’ quarterly earnings has been unchanged at 35 cents per share, whereas it incurred a loss of 24 cents a year ago.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Deutsche Bank Aktiengesellschaft (DB): Free Stock Analysis Report UBS Group AG (UBS): Free Stock Analysis Report Macro Bank Inc. (BMA): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks