First-half year earnings before tax for 2023 reach €3.3 billion, a figure most substantial since 2011 on our site.
Deutsche Bank Reports Strong Q2 Performance, Narrowing Towards 2025 Financial Targets
Deutsche Bank has released its Q2 2023 financial results, showcasing a robust performance across various sectors. The bank's liquidity reserves stood at a substantial €244 billion at the end of the second quarter, with High Quality Liquid Assets amounting to €204 billion.
The Asset Management sector reported a net revenue of €620 million in the second quarter, marking a 6% year-on-year decline. Conversely, the Private Bank net revenues surged by 11% year on year, reaching €2.4 billion. However, the Investment Bank net revenues dipped by 11% year on year, amounting to €2.4 billion.
The bank's Corporate Bank reported a strong performance, with net revenues of €1.9 billion in the second quarter, representing a 25% year-on-year increase. The Investment Bank's net revenues for the first six months were €5.1 billion, down 15% compared to the same period in 2022.
Deutsche Bank's businesses contributed significantly to sustainable financing. The Corporate Bank provided €4 billion in sustainable financing, the Investment Bank issued €10 billion in sustainable financing and capital market issuance, and the Private Bank grew its ESG assets under management by €2 billion and extended €1 billion in ESG new client lending in the second quarter. The cumulative total of ESG-related financing and investment volumes since January 1, 2020, stands at €254 billion.
The Leverage ratio was 4.7% in the quarter, up from 4.6% in the previous quarter. Noninterest expenses were €5.6 billion in the second quarter, up 15% year on year. Adjusted costs, which exclude nonoperating costs, were €4.9 billion in the second quarter, reflecting a monthly run-rate within the bank's guidance range.
Deutsche Bank's 2025 financial targets include a post-tax return on tangible equity (RoTE) of over 10% and a cost/income ratio of about 62-63%. The bank has made significant progress towards these targets, with RoTE reaching 11.9% in Q1 2025, surpassing the 10% target, and a cost/income ratio of 62.3% in H1 2025.
Additional key targets and achievements for 2025 are a revenue compound annual growth rate (CAGR) of 5.5–6.5% from 2021 to 2025, approximately €2.5 billion in operating efficiencies, Risk-weighted asset (RWA) reductions targeted at €25-30 billion, a CET1 capital ratio target around 13.5-14.0%, and the bank has also executed significant capital returns through dividends and share buybacks, supporting capital optimization.
Net revenues for the first six months of 2023 were €15.1 billion, up 8% compared to the same period in 2022. The Common Equity Tier 1 (CET1) capital ratio was 13.8% at the end of the second quarter, above the bank's 2025 capital objective of around 13%.
An analyst call to discuss second quarter 2023 financial results will take place at 11:00 CEST today. A fixed income investor call will take place on July 28, 2023.
[1] Deutsche Bank's 2025 Financial Targets (Deutsche Bank, 2021) [3] Deutsche Bank's Q1 2025 Financial Results (Deutsche Bank, 2025) [4] Deutsche Bank's H1 2025 Financial Results (Deutsche Bank, 2025)
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