Q2 pretax profit ex Postbank provision 1.7 bln eur (Il Sole 24 Ore Radiocor) - Berlin, 24 Jul - Deutsche Bank said its second quarter revenues came in at 7.6 billion euros, up 2% with a 10% increase at its investment banking unit to 2.599 billion euros offsetting the 1% dip in the Corporate Bank to 1.922 billion euros and the 3% drop in Private Banking at 2.332 billion.

Revenue at the asset management division rose 7% to 663 million euros.

In the first half, revenue rose 2% to 15.368 billion with a 12% rise in investment banking and a 3% drop in both the corporate bank and the private bank, while asset management grew 6%. The first half revenue were more than halfway toward the bank's 2024 full-year guidance of around 30 billion euros.

Pretax profit in the first half slumped to 411 million euros from 1.405 billion but reflected a 1.3 billion provision for litigation related to the Postbank takeover. Excluding this, pretax profit would have been 1.7 billion euros. In the first half pretax profit was 2.446 billion euros or 3.8 billion excluding the Postbank litigation provision, compared to profit before tax of 3.3 billion in the first half of 2023.

Net profit in the quarter was 52 million euros from 940 while the group posted a net loss attributable to shareholders of 143 million euros from a profit of 763 million a year ago. In the first half, the bottom line was a positive 1.132 billion euros from 1.921 billion last year.

For the first six months, provision for credit losses was 915 million, compared to 772 million in the prior year period, with a 9% increase in the Corporate Bank and an 11% drop at the Private Bank, benefitting from the sale of non-performing loans and the non-recurrence of provisions relating to a small number of idiosyncratic events in the prior year period. Investment Bank provisions were 313 million, materially higher than the prior year period, and largely affected by the commercial real estate sector.

The bank now expects the full-year 2024 provision for credit losses to be slightly above 30 basis points, above prior guidance, reflecting commercial real estate provisions which are moderately lower, although improving at a slower-than-expected pace, as well as improvements in the Corporate Bank.

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(RADIOCOR) 24-07-24 08:01:29 (0094) 5 NNNN