Deutsche Bank registers 3% Y/Y drop in net profit in Q3 2023
Deutsche Bank (ETR:DBK) today announced profit before tax of €1.7 billion for the third quarter of 2023, up 7% compared to the third quarter of 2022.
Third quarter post-tax profit was €1.2 billion, down 3% compared to the prior year quarter. The year-on-year development reflected an effective tax rate of 30% in the quarter, compared to 23% in the prior year quarter.
Post-tax RoTE was 7.3%, compared to 8.2% in the third quarter of 2022. Post-tax return on average shareholders’ equity (RoE) was 6.5%, down from 7.4% in the prior year quarter.
For the first nine months, profit before tax was €5.0 billion, up 3% year on year, after absorbing nonoperating costs of € 943 million, up from € 170 million in the first nine months of 2022. Excluding nonoperating costs, profit before tax would have been € 5.9 billion in the first nine months of 2023, up 19% from € 5.0 billion in the prior year period.
Post-tax profit in the first nine months was €3.5 billion, down 6% year on year; the year-on-year development reflected higher nonoperating costs and an effective tax rate of 30%, compared to 24% in the prior year period.
James von Moltke, Chief Financial Officer, said:
“Our progress on capital efficiency, and on scoping future regulatory requirements, give us much greater clarity on our potential to free up additional capital. With better visibility on revenue growth, strong risk management and continued cost control, we’re increasingly confident that we can accelerate our growth and shareholder return strategies despite the uncertainties in the environment.”
Liquidity reserves were € 245 billion at the end of the third quarter, up slightly from € 244 billion at the end of the second quarter, including High Quality Liquid Assets of € 210 billion.
The Liquidity Coverage Ratio was 132%, above the regulatory requirement of 100%, representing a surplus of € 51 billion. The Net Stable Funding Ratio was 121%, slightly above the bank’s target range of 115-120% and representing a surplus of € 105 billion above required levels.