Deutsche Bank AG

For the first half of 2026, Deutsche Bank reported revenues of EUR 17.2 billion and post-tax profit of EUR 4.1 billion, its highest ever for a half year. Post-tax RoTE was 11.9% and the cost/income ratio was 60.9%; CET1 capital ratio was 13.9%. In Q2, net revenues were EUR 8.5 billion, revenues were up 9% year-on-year, profit before tax increased 11% year-on-year, RoTE was 11%, and the cost/income ratio was 63%. NII was EUR 3.6 billion in the quarter, and noninterest expenses were about EUR 5.3 billion, up 8% year-on-year. For the full year, management said revenue is on track to reach around EUR 33 billion, NII across key banking book segments and other funding is expected to slightly exceed prior guidance of around EUR 14 billion, and provision for credit losses is still expected to reduce slightly year-on-year. Management also reiterated full-year expense guidance and said the EUR 500 million buyback from 2026 net income will start after completion of the current EUR 1 billion buyback.

Christian Sewing framed the quarter as evidence that the bank’s Global Hausbank strategy is working, highlighting revenue growth, strong capital generation, and progress on efficiency. He pointed to record half-year profit, a 13.9% CET1 ratio, and the new EUR 500 million buyback as signs of confidence. He was optimistic on 2026, while also saying the bank’s 2028 RoTE target of greater than 13% remains credible and may have upside if current trends continue.

Raja Akram emphasized solid second-quarter execution, with net revenues of EUR 8.5 billion, profit before tax up 11% year-on-year, and CET1 at 13.9%. He noted noninterest expenses of around EUR 5.3 billion were up 8% year-on-year due to compensation, lower litigation releases, and about EUR 100 million of India franchise exit costs, while incremental investments were around EUR 200 million and efficiencies around EUR 200 million, largely offsetting each other. He also said provision for credit losses was EUR 460 million, the CET1 buyback announced today has no incremental impact because it is fully covered by CET1 deductions, and risk-weighted assets rose by EUR 5 billion excluding FX effects.

The call was mostly prepared remarks, with no detailed analyst Q&A included in the transcript. Management did, however, address likely investor concerns by explaining that Q2 C&O benefited from valuation and timing differences that should reverse later in the year, while credit costs were boosted by targeted CRE derisking actions. They also clarified that higher investments are being paced flexibly, with positive jaws expected to become more visible over the next two years and NII benefits from rate moves expected to become more pronounced in 2027 and 2028.