Deutsche Bank reported a stronger-than-expected second-quarter performance on Wednesday, with a 10% increase in net profit as robust performance from its global investment banking division helped counter rising expenses, according to a report by Reuters.
Germany’s largest lender posted a net profit attributable to shareholders of €1.640 billion ($1.87 billion) for the quarter, compared with €1.485 billion in the same period a year earlier. The result surpassed analysts’ expectations of a profit of €1.377 billion, as per the report.
The bank’s investment banking business emerged as a key growth driver, benefiting from increased market activity, including stronger trading volumes, merger and acquisition activity, and a revival in initial public offerings. Several major US and European banks have also gained from the recent trading boom, supported by heightened market volatility following geopolitical developments such as the Iran conflict.
However, Deutsche Bank’s profit growth was relatively modest compared with some of its global peers, which have delivered stronger gains amid favourable market conditions.
The lender has been focused on improving profitability through cost controls and strengthening its core businesses. Despite higher expenses weighing on results, the latest earnings performance reinforced confidence in its long-term strategy.
Deutsche Bank CEO Christian Sewing said the bank sees potential upside to its 2028 targets, highlighting the lender’s positive outlook on future growth and profitability.
The results come as European banks continue to benefit from resilient capital markets activity, while navigating challenges including elevated costs, regulatory pressures, and an uncertain global economic environment, the report stated.
