Deutsche Bank reported a net profit of 1.56 billion euros for shareholders for the quarter, exceeding the analysts’ expectation of around 1.34 billion euros.
Deutsche Bank reported a 7% increase in third-quarter profit, defying expectations for a decline. The strong performance was all thanks to a chunky increase in revenue from its global investment banking division.
The investment bank was the bank’s main source of income, with income rising in the quarter from bond trading and debt issuance.
These results came at a time when Deutsche was at the end of a three-year restructuring plan and was attempting to reach ambitious targets that analysts were highly skeptical it would achieve. CEO Christian Sewing highlighted that they are on track to reach their 2025 financial targets.
Germany’s biggest bank recorded a net profit for shareholders of 1.56 billion euros ($1.82 billion) for the quarter from a profit of 1.46 billion euros last year, which is above the analysts’ expectation of around 1.34 billion euros.
These earnings were part of the unbroken streak of quarterly profits over the past five years, making up for earlier heavy losses as Sewing has focused on stabilizing the bank.
Deutsche’s quarterly earnings were part of the results released by the biggest European banks, as investors closely watch how they are weathering the sluggish economy, a strong euro, and the ongoing trade war.
The investment bank unit, which operates from Sydney to New York, posted an 18% income climb, surpassing expectations of a 10.8% increase.
Within the investment bank, income from fixed income and currency trading, one of the bank’s core businesses, jumped 10%, more than the 8.1% analysts expected. For comparison, JPMorgan reported a 21% increase and Goldman Sachs saw a 17% gain.
JPMorgan Chase also increased its full-year forecast for net interest income after seeing a strong performance in its trading and investment banking activities, which helped it beat expectations for third-quarter profit.
Despite concerns about high tariffs, people hope that the US will lower interest rates, that companies will continue to make major business deals, and that stocks will be offered. This will fuel investment banking growth on Wall Street, with experts expecting more deals in 2026.
Goldman Sachs, a major US bank, reported higher-than-expected third-quarter profits on Wall Street on Tuesday. This success was driven by higher advisory fees and strong markets, which boosted asset management income. The bank’s optimistic outlook for dealmaking is borne out as many companies pursue mergers and listings. Goldman’s investment banking fees increased 42% to $2.66 billion in the quarter ending September 30. It is more than the experts predicted, a 14.3% increase. Its advisory business saw a 27% revenue gain, beating expectations for a 24.4% rise. Deutsche Bank has also recently made key changes within this business.
Among Deutsche’s European rivals, BNP Paribas reported lower-than-expected income. Barclays saw an uneven performance in investment banking. The investment banking industry is rebounding in dealmaking after seeing a slowdown due to US trade tariffs and related market uncertainty.
Deutsche Bank CEO Christian Sewing has described 2025 as a “year of reckoning” for the bank, as it faces increasing pressure to meet its cost-control and profit targets. The bank is also now creating new financial goals for 2026, with more details to be released in November.
Deutsche Bank aims for a cost-to-income ratio below 65% and tangible equity, a key profitability measure, above 10%.
In other business units within Deutsche, revenue growth was mixed. The retail banking arm’s revenue increased by 4%, in line with expectations, while the corporate bank’s revenue fell 1%, compared to analyst predictions of a slight increase. Meanwhile, DWS, the asset management unit majority-owned by Deutsche, reported a 34% jump in net profit.