Deutsche Bank AG (ETR:DBK) today posted a set of solid metrics for the second quarter of 2021. in fact, the bank reported its best second quarter and best first half year since 2015. Significant year on year profit improvement across all businesses was driven by resilient revenues, sustained progress on cost reduction and substantial year on year improvements in provision for credit losses.

Group profit before tax was €1.2 billion in the second quarter of 2021, versus €158 million in the second quarter of 2020. Net profit was €828 million, up from € 61 million in the prior year quarter. Post-tax return on average shareholders’ equity was 4.9% and post-tax RoTE was 5.5% in the quarter. The cost/income ratio was 80%, down from 85% in the prior year quarter.

The quarter reflected a negative impact on profit before tax of €226 million from the ruling by the German Federal Court of Justice (Bundesgerichtshof or ‘BGH’) in April 2021 requiring active customer consent for pricing changes on current accounts. This included an impact of €96 million in foregone revenues, of which €93 million was in the Private Bank Germany with the balance in the International Private Bank and Corporate Bank. The cost impact was €130 million in litigation expenses, also predominantly in the Private Bank.

For the first six months of 2021, profit before tax was €2.8 billion, up from €364 million in the same period of 2020. Net profit was €1.9 billion, up from €126 million in the prior year period. Post-tax RoTE1 was 6.5%, and 7.6% if adjusted for transformation-related effects and specific revenue items. The cost/income ratio was 78%, down from 87% in the first six months of 2020.

Group net revenues were €6.2 billion, down 1% versus the second quarter of 2020. Revenue development in the quarter reflected the normalisation of financial markets compared to the prior year quarter, continued low interest rates, and the impact of foregone revenues due to the BGH ruling. Revenues in the Core Bank were €6.3 billion, down 1%.

For the first six months, Group net revenues grew 7% to €13.5 billion, while Core Bank net revenues grew 5% to €13.4 billion.

Investment Bank net revenues were € 2.4 billion in the second quarter of 2021, down 11% from the year-ago quarter. Revenues in Fixed Income & Currencies (FIC) were € 1.8 billion, down 11%. This development largely reflected the anticipated normalisation of financial market activity compared to the second quarter of 2020, which impacted revenues in Rates, Emerging Markets and FX.

This was partly offset by strong year on year growth in Credit, both Trading and Financing. Origination & Advisory revenues were 2% higher at €624 million. Advisory revenues were more than double the prior year quarter, driven by higher M&A activity, while lower levels of Investment Grade Debt issuance in normalising markets more than offset growth and market share gains in Leveraged Debt Capital Markets.