Deutsche Bank DB reported third-quarter 2024 earnings attributable to its shareholders of €1.5 billion ($1.6 billion), up 41.7% year over year.

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The Germany-based lender reported a profit before tax of €2.3 billion ($2.4 billion), up 31.2% year over year. Third-quarter profit growth was driven by approximately €440 million ($474.4 million) partial release of Postbank-related litigation provisions.

Excluding Postbank-related litigation release, profit before tax of €1.8 billion ($1.9 billion) increased 6% year over year.

Results were positively impacted by solid growth in Investment Bank revenues and the partial release of Postbank-related litigation provisions. However, DB has increased its provision of credit loss forecast for 2024. This led investors to turn bearish on the stock, resulting in a fall of 1.4%.

Deutsche Bank’s Revenues & Expenses

The bank generated net revenues of €7.5 billion ($8.1 billion), up 5% year over year. This upside was primarily driven by strong growth in commissions and fee income, and broadly stable net interest income.

Non-interest expenses of €4.7 billion ($5.1 billion) declined 8% from the prior-year quarter.

Provision for credit losses was €494 million ($474.9 million), significantly up from €245 million ($264.1 million) in the prior-year quarter.

DB’s Segmental Performance

Corporate Bank: Net revenues for the segment were €1.8 billion ($1.9 billion), down 3% year over year. The results were hurt by lower net interest income, a decline in loan net interest income, and a decrease in Corporate Treasury Services and Business Banking revenues.

Investment Bank: This segment’s net revenues totaled €2.5 billion ($2.7 billion), up 11% year over year. The upside was primarily driven by growth across Fixed Income and Currencies, and Origination & Advisory.

Private Bank: Net revenues of €2.3 billion ($2.5 billion) were essentially flat year over year. This reflects an increase in Wealth Management & Private Banking revenues, and lower revenues in Personal Banking.

Asset Management: Net revenues of €660 million ($711.5 million) rose 11% year over year. An increase in management fees led to the rise.

Corporate & Other: The segment reported net revenues of €157 million ($169.2 million), up from €35 million ($37.7 million) a year ago.

Deutsche Bank’s Capital Position

DB’s Common Equity Tier 1 capital ratio was 13.8% as of Sept. 30, 2024, down from the year-ago quarter’s 13.9%.

The leverage ratio on a fully loaded basis was 4.6%, down from the year-ago quarter's 4.7%.