Deutsche Bank Q3 Earnings Rise Y/Y, Provisions Decline Y/Y

Deutsche Bank DB reported third-quarter 2025 earnings attributable to its shareholders of €1.56 billion ($1.82 billion), up 7% year over year.

This Germany-based lender reported a record profit before tax of €2.4 billion ($2.8 billion), up 8% from the year-ago quarter. Excluding the €440 million ($512.9 million) positive impact from the partial release of Postbank-related litigation provisions in the prior-year quarter, profit before tax increased 34% year over year.

Increased revenues and lower provision for credit losses aided results. However, higher expenses were a spoilsport.

Deutsche Bank’s Revenues & Expenses

The bank generated net revenues of €8 billion ($9.4 billion), up 7.2% year over year.

Non-interest expenses of €5.2 billion ($6 billion) increased 9.2% from the prior-year quarter.

Adjusted non-interest expenses (excluding non-operating items) were €5 billion ($5.8 billion), down slightly from the prior-year quarter.

Provision for credit losses was €417 million ($486 million), down 15.5% from the prior-year quarter.

DB’s Segmental Performance

Corporate Bank: Net revenues from the segment were €1.8 billion ($2.1 billion), down 1.4% year over year. A decrease in Institutional Client Services and Business Banking revenues hurt the results.

Investment Bank: This segment’s net revenues totaled €2.9 billion ($3.5 billion), up 18% year over year. The upside was primarily driven by growth across Fixed Income and Currencies, and Equity Origination & Advisory.

Private Bank: Net revenues of €2.4 billion ($2.8 billion) were up 4.1% year over year.

Asset Management: Net revenues of €734 million ($855.5 million) rose 11.2% year over year. An increase in performance and transaction fees led to the rise.

Corporate & Other: The segment reported net revenues of €99 million ($115.4 million), down 36.9% from the prior-year quarter.

Deutsche Bank’s Capital Position

DB’s Common Equity Tier 1 capital ratio was 14.5% as of Sept. 30, 2025, up from the year-ago quarter’s 13.8%.

The leverage ratio on a fully loaded basis was 4.6%, unchanged from the year-ago quarter.

Our Viewpoint on Deutsche Bank

A strong balance sheet position and a shift toward a capital-light business model will likely support Deutsche Bank's financials. Also, the company’s strong capital position aids sustainable capital distribution moves. However, an elevated expense base is likely to hurt its bottom-line growth.

Deutsche Bank Aktiengesellschaft Price, Consensus and EPS Surprise

Deutsche Bank Aktiengesellschaft price-consensus-eps-surprise-chart | Deutsche Bank Aktiengesellschaft Quote

The company currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Foreign Banks

ICICI Bank Ltd.’s IBN profit after tax for second-quarter fiscal 2026 (ended Sept. 30, 2025) was INR123.6 billion ($1.42 billion), up 5.2% from the prior-year quarter.

IBN results benefited from growth in net interest income and non-interest income, along with lower provisions. The loan balance increased sequentially, which was another tailwind. However, an increase in expenses was the undermining factor.

Barclays BCS reported third-quarter 2025 net income attributable to ordinary equity holders of £1.46 billion ($1.97 billion), down 6.8% from the prior-year quarter.

BCS’s results were hurt by an increase in expenses and higher credit impairment charges. However, an increase in revenues and a solid balance sheet supported the results for Barclays.

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