Deutsche Bank Reports a 15% Jump in Profit before Tax during Q3 2021

Deutsche Bank (NYSE: DB) released its financial results for the third quarter of 2021 today. In the last three months, Deutsche Bank’s pre-tax profit reached € 554 million, which is 15% higher compared to the same period last year.

In terms of net income, the figure jumped 6% YoY to €329 million. Additionally, the German financial services giant highlighted a strong performance in its asset management division. Deutsche Bank saw transformation charges of €583 million in the latest quarter.

For the first nine months of 2021, Deutsche Bank’s profit before tax reached €3.3 billion, despite €798 million in transformation charges and €324 million relating to the BGH ruling. Net income stood at €2.2 billion in the first nine months.

“In the third quarter, we again demonstrated the operating strength of our business: our revenues have proven to be resilient, we have increased our pre-tax profit despite additional transformation charges, and we have already exceeded our full-year 2021 sustainability target. We are focused on driving efficiencies while maintaining strong controls, and we are confident of achieving Deutsche Bank’s 2022 targets,” Christian Sewing, Chief Executive Officer at Deutsche Bank, said.

Corporate Banking and Asset Management

Deutsche Bank’s corporate banking and asset management divisions performed well in 2021. According to the bank, its asset management net revenues reached €656 million, which is up 17% YoY and the highest for seven quarters, driven primarily by a rise in management fees to the highest level for over six years. In terms of corporate banking, the overall revenues remained stable at €1.3 billion.

“Net inflows, together with a positive impact from currency movements, drove assets under management up by €21 billion to a record €880 billion. Since the third quarter of 2020, assets under management have grown by €121 billion including net inflows of €46 billion. For the first nine months, net revenues were up 18% to €1.9 billion while net inflows were €33 billion, including ESG net inflows of €13 billion,” the bank added in the announcement.