Deutsche Bank Q3 profit falls 8%, but more optimistic on revenue
By Tom Sims and Frank Siebelt
FRANKFURT (Reuters) -Deutsche Bank on Wednesday posted a better-than-expected 8% drop in third-quarter profit, as revenue at the investment bank slumped but grew in the retail and corporate divisions on the back of higher interest rates.
The bank was slightly more optimistic on its revenue outlook for the full year, forecasting it would reach 29 billion euros ($30.73 billion), the top end of its previous guidance range, as it upgraded the outlook for revenue at the retail division.
Deutsche Bank shares were seen up 1.3% in Lang & Schwarz pre-market trade after the results.
The figures underscored trends in global banking emerging from a slew of mixed earnings reports that have shown investment banks struggling with deal activity muted and trading sluggish, while higher interest rates prove a boon to other divisions.
Net profit attributable to shareholders at Germany's largest bank was 1.031 billion euros, better than analyst expectations for profit of around 937 million euros.
Though earnings dropped, it marked the 13th consecutive profitable quarter, a considerable streak in the black after years of hefty losses.
«These results demonstrate strong and sustained business growth momentum combined with continued cost discipline,» Deutsche Bank CEO Christian Sewing said.
But the earnings come as the investment bank faces uncertain business prospects in the coming quarters and as the retail division draws the scorn of regulators after it botched the integration of its Postbank arm, leaving customers complaining that they were locked out of their accounts and unable to reach call centres.
The bank's retail business was again the biggest revenue generator during the quarter.
Analysts expect the
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