Deutsche Bank posted an attributable net profit of €2.106bn through June, up 32% from €1.6bn a year ago, reflecting higher revenues and lower costs, despite higher provisions.
Deutsche Bank reported this Wednesday that net income increased 4% between January and June, to 13,977 million euros.
In that period, the largest private commercial bank in Germany increased provisions for bad debts to 525 million euros (+264.5%), given the forecasts of falling economic growth.
Despite the provisions made, Deutsche Bank managed in the first half highest after-tax income since 2011, 2,400 million euros.
With the highest half-year profit since 2011, we demonstrated once again that we were able to grow and increase profit in a challenging environment,” said Deutsche Bank CEO Christian Sewing during the results presentation, stating that he was very pleased with the progress in corporate and commercial banking.
In a letter to bank workers, Sewing said, however, concern about “energy supplyin particular gas shortages, rising inflation and the threat of recession in many regions.”
At the end of June, Deutsche Bank had a CET1 risk-weighted capital-to-assets ratio of 13% at the end of June (compared to 12.8% in the first quarter and 13.2% a year ago).
Already the efficiency ratio improves in the second quarter to 73% (78% in June 2021).
Deutsche Bank also confirmed revenue forecasts for this year of €26-27 billion, despite the deteriorating macro environment in the second quarter, anticipating a more challenging second half.
Source: Observadora
