The share price of Deutsche Bank showed an increase of almost 7% after the financial institution said that high profits meant paying shareholders a larger amount of cash over the next two years than initially expected.
The specified lender in its report for the third quarter of this year said that it is currently on track to achieve an annual revenue of €29 billion ($31 billion). If this result becomes a reality, the financial institution will receive the largest revenue in the last seven years.
The bank’s report also contains information about the availability of opportunities to release additional capital for approximately €3 billion ($3.2 billion) from now until 2025.
Separately, the financial institution announced the expectation of repurchasing more of its securities next year. Experts note that in most cases, such processes provoke a decline in the value of shares.
Deutsche Bank recorded a pre-tax profit of €1.7 billion ($1.8 billion) in the third quarter. This indicator is 7% higher than the result for the same period last year. The lender’s net revenue for the last quarter was recorded at the level of €7.1 billion (7.5 billion dollars). This indicator grew by 3% year-on-year. The increase in revenue is due to private and corporate banking units’ success.
Christian Sewing, executive director of the financial institution, said that the results for the last quarter are evidence of the strong and steady growth dynamics of the lender’s business, noting that cost discipline is currently maintained.
Also, the indicators of the bank’s activities for the third quarter are a kind of sign of an amazing change in the state of affairs towards improvement. Over the past few years, the financial institution has faced fines from regulators, which have became a factor of negative impact on its reputation and stock price, mass layoffs, and scandals. The lender’s securities have almost doubled since the record decline in this indicator in March 2020.
In July of this year, the US Federal Reserve fined the bank $186 million for failing to eliminate unreasonable and dangerous practices. The regulator stated that over the past five years, the lender has not demonstrated significant progress in the fight against money laundering.
As we have reported earlier, Deutsche Bank Tests AI Tools.