According to the German lender, revenues were up 5 per cent if adjusted for a reduction in forgone revenues from the ruling by the German Federal Court of Justice in April 2021 regarding pricing changes on current accounts and higher revenues from Sal. Oppenheim workout activities. 

This growth was driven by strong net interest income, foreign exchange movements movements and continued new business volumes, the bank said in a statement this week. 

Revenues in the Private Bank Germany were €1.3 billion, up 8 per cent, or essentially stable if adjusted for the reduced impact of the BGH ruling. 

International Private Bank revenues were €977 million, up 22 per cent, or 14 per cent if adjusted for Sal. Oppenheim workout activities, the wealth business which the bank purchased about a decade ago. 

Private bank net new business volumes were €12 billion in the quarter, the bank continued. This included net inflows into assets under management of €8 billion, including €6 billion into investment products and €2 billion into deposits, and net new client loans of €4 billion. 

For the first nine months, private bank net revenues were up 7 per cent to €6.6 billion and net new business volumes were €36 billion, the firm said. Asset Management net revenues also rose 1 per cent year-on-year to €661 million. 

Overall results
Net revenues across all core businesses were €6.9 billion, up 15 per cent year on year and the highest third-quarter revenues since 2016.

The German bank announced its highest third-quarter profit before tax since 2006. Profit before tax was €1.6 billion for the third quarter of 2022, up nearly threefold compared with €554 million in the prior year quarter, while post-tax profit was €1.2 billion, up more than threefold from €329 million in the third quarter of 2021. 

Profit growth reflected 15 per cent year-on-year growth in net revenues together with an 8 per cent reduction in noninterest expenses, the bank added.  

Post-tax return on average tangible shareholders’ equity was 8.2 per cent, up from 1.5 per cent in the prior year quarter. Post-tax return on average shareholders’ equity was 7.4 per cent in the quarter, up from 1.4 per cent year-on-year, the bank continued. The cost/income ratio also improved to 72 per cent, from 89 per cent in the third quarter of 2021.

Welcoming the results, James von Moltke, chief financial officer, said: “2022 is a landmark year for Deutsche Bank, we have delivered revenue and profit growth and built operating strength across all four of our core businesses in the year to date.” 

“We also saw the benefits of tight risk discipline, strong capital, and conservative balance sheet management. We have laid firm foundations for the next phase of our strategy through 2025,” he continued.

Russian exposure     
Deutsche Bank said it further reduced its Russian credit exposures during the third quarter. Additional contingent risk was reduced to €0.2 billion, down from €0.6 billion at the end of the second quarter. 

This comprised undrawn commitments of €0.2 billion, largely mitigated by Export Credit Agency coverage and contractual drawdown protection and guarantees of €0.1 billion, the bank said. Gross loan exposure was reduced from €1.3 billion to €1.0 billion, while net loan exposure was €0.5 billion. In 2022 to date, additional contingent risk is down 83 per cent and net loan exposure down 19 per cent, the German lender added.

Shares in Deutsche fell slightly by 0.4 per cent in trading in Frankfurt.