Deutsche Bank finances the construction of the Goorambat East Solar Farm
Deutsche Bank has announced that it has a closed a AUD 348 million debt and bank guarantee facility for Goorambat East Solar Farm. The bank is proud to act as Initial Financer, Bank Guarantee Facility Provider, and Hedge Provider on this transaction.
The 250MW Goorambat East Solar Farm is being developed by ENGIE ANZ. Construction and commissioning of the 250 MW solar farm is expected to be finished in 2026.
Rachel Chia, Deutsche Bank’s Head of Project Finance, Asia Pacific, said: “Deutsche Bank has provided an all-encompassing financing solution to support ENGIE ANZ in the establishment of Goorambat East Solar Farm, further advancing renewable energy solutions in Victoria.”
This marks the 23rd renewable asset that Deutsche Bank has project financed in Australia since 2021.
Once completed, at its maximum capacity, the solar farm could generate enough electricity to power the equivalent of 105,000 average Victorian homes, helping to bolster energy security in the state.
Laura Caspari, Managing Director of Renewables at ENGIE ANZ, said: “ENGIE’s Goorambat East Solar Farm project represents a significant new private investment into regional Victoria and will create approximately 250 new jobs during the construction phase and a community benefit fund designed to deliver long-term benefits to Goorambat and surrounding communities.”
Deutsche Bank reports first-half 2024 profit before tax of € 2.4 billion; € 3.8 billion excluding Postbank takeover litigation provision
Deutsche Bank announced profit before tax of € 411 million for the second quarter of 2024, or € 1.7 billion excluding a previously-announced provision of € 1.3 billion for litigation related to the Postbank takeover. This compares to profit before tax of € 1.4 billion in the second quarter of 2023. Post-tax profit was € 52 million, down from € 940 million in the prior year quarter.
Deutsche Bank’s target ratios were also impacted by the Postbank litigation provision but improved year on year excluding this effect. Post-tax RoTE¹ was a negative 1.0%, or 6.9% if adjusted for the Postbank litigation provision, compared to RoTE¹ of 5.4% in the prior year quarter, while post-tax return on average shareholders’ equity (RoE¹) was negative 0.9%, compared to 4.9% in the prior year quarter. The cost/income ratio was 88%, or 71% excluding the Postbank litigation provision, compared to a cost/income ratio of 76% in the prior year quarter.
For the first six months of 2024, profit before tax was € 2.4 billion, or € 3.8 billion excluding the Postbank litigation provision, compared to profit before tax of € 3.3 billion in the first half of 2023. Post-tax profit was € 1.5 billion, compared to € 2.3 billion in the prior year period. Post-tax RoTE¹ was 3.9%, or 7.8% excluding the Postbank litigation provision, compared to RoTE¹ of 6.8% in the prior year period. Post-tax RoE¹ was 3.5%, compared to 6.1% in the prior year period. The cost/income ratio was 78%, or 69% excluding the Postbank litigation provision, compared to a cost/income ratio of 73% in the prior year period.
“Our second quarter and first half 2024 results position us well to deliver in 2025,” added James von Moltke, Chief Finance Officer. “Looking ahead, we anticipate continued revenue momentum as our strategic growth investments bear fruit. We also see further scope for adjusted cost savings as our Operational Efficiency program progresses, and as we continue to put restructuring costs behind us and resolve legacy litigation matters. Furthermore, we expect credit provisions to normalize as interest rate pressures ease.”
Continued delivery of the Global Hausbank strategy
Deutsche Bank made progress on all dimensions of its accelerated Global Hausbank strategy in the quarter:
Revenue growth: Revenues grew by 2% year on year to € 7.6 billion in the second quarter of 2024, with double-digit growth in commissions and fee income and stable net interest income in the key segments of the banking book². The bank’s compound annual revenue growth rate over the last 12 months since 2021 was 5.7% at the end of the quarter, within the bank’s raised target range of between 5.5% and 6.5%. Revenues for the first six months of 2024 were € 15.4 billion, up 2% year on year, more than halfway toward the bank’s 2024 full-year guidance of around € 30 billion.
Operational efficiency: Adjusted costs were € 5.0 billion in the second quarter, up 2% compared to the second quarter of 2023 and in line with the bank’s guidance for adjusted costs of € 5.0 billion per quarter in 2024. The bank made further progress on its € 2.5 billion Operational Efficiency program, which includes optimization of the platform in Germany and workforce reductions, notably in non-client-facing roles. Total savings either realized or expected from measures completed reached € 1.5 billion, including € 1.2 billion in realized savings. Workforce reductions related to the Operational Efficiency program reached a cumulative total of 2,700 full-time equivalents (FTEs), including 700 during the second quarter, nearly 80% of the planned total though end-2024. In addition, contract external staff have been reduced by approximately 1,100 in 2024 to date.
Capital efficiency: Deutsche Bank delivered RWA equivalent benefits of a further € 4 billion during the second quarter through data and process improvements. As a result, cumulative RWA reductions from capital efficiency measures reached € 19 billion, marking further progress towards the bank’s raised goal of € 25-30 billion by the end of 2025. As anticipated, on July 11, 2024 the bank completed the share repurchase program launched on March 4, 2024. Under this program, 46.4 million shares were repurchased for € 675 million, bringing cumulative shareholder distributions through dividends and share repurchases to € 3.3 billion since 2022.
Revenues: on track towards 2024 guidance
Net revenues were € 7.6 billion in the second quarter, up 2% over the second quarter of 2023. Commissions and fee income grew 12% year on year to € 2.6 billion, the second consecutive quarter of double-digit growth. Net interest income in the key segments of the banking book2 was stable year on year; Group reported net interest income was lower, driven by asymmetries in the recognition of revenues arising from certain hedging positions which are recorded in noninterest income. These asymmetries do not impact the Group’s total revenues. For the first six months, revenues also rose 2% to € 15.4 billion, more than halfway towards the bank’s full-year 2024 guidance for revenues of around € 30 billion, and commissions and fee income grew 12% to € 5.2 billion.
Revenue development in the bank’s core businesses was as follows:
Corporate Bank net revenues were € 1.9 billion, essentially flat compared to the second quarter of 2023. Net interest income was € 1.3 billion, down 2% year on year, reflecting the expected normalization of deposit revenues and the discontinuation of remuneration for minimum reserves by the ECB. This development was offset by 9% growth in commissions and fee income to € 624 million, driven partly by growth in Trade Finance and Lending. Corporate Treasury Services revenues were € 1.1 billion, down 2% year on year, while Institutional Client Services revenues rose 8% to € 532 million and Business Banking revenues declined 9% year on year to € 332 million. For the first six months, net revenues declined 3% to € 3.8 billion. Corporate Treasury Services revenues were down 6% to € 2.1 billion, while Institutional Client Services revenues grew 6% to € 995 million and Business Banking revenues declined 4% to € 678 million. In the Euromoney Awards for Excellence 2024, Deutsche Bank was named World’s Best Bank for Corporates and Best Bank for Corporates in Germany. In the 2024 survey by FINANCE magazine, Deutsche Bank was named Best Corporate Bank in Germany, Best Hausbank, #1 in Cash Management/Payment Transactions and #1 in Trade and Export Finance.
Investment Bank net revenues were € 2.6 billion, up 10% over the second quarter of 2023. Growth was primarily driven by a doubling of Origination & Advisory revenues to € 585 million, with Advisory revenues up nearly threefold and Debt Origination growing 88% year on year, as Deutsche Bank made share gains in a growing fee pool (source: Dealogic). Revenues in Fixed Income & Currencies (FIC) declined 3% to € 2.1 billion. Financing revenues were essentially stable year on year, as were Credit Trading revenues, as strength in the Flow business, reflecting investments in prior periods, offset the impact of the non-recurrence of a strong prior year quarter in Distressed. Emerging Markets revenues were in line with a strong prior year quarter. Rates revenues were slightly lower year on year, reflecting an uncertain interest rate environment, while Foreign Exchange revenues were lower as lower market volatility more than offset strength in the Spot business following investments in technology. For the first six months, Investment Bank revenues grew 12% to € 5.6 billion, driven primarily by growth of 76% in Origination & Advisory revenues to € 1.1 billion. Deutsche Bank’s share of a growing global Origination & Advisory fee pool rose by more than 70 basis points to 2.6%, and the bank’s global ranking rose from 11th to 7th compared to the full year 2023 (source: Dealogic). These gains reflected strength across Debt Origination and growth in M&A. FIC revenues rose 3% to € 4.6 billion, driven by 7% growth in Financing revenues to € 1.6 billion. In the Euromoney Awards for Excellence 2024, Deutsche Bank was named Best Investment Bank in Germany, while in the 2024 survey by FINANCE magazine, Deutsche Bank was awarded Best Advice on DCM business, Best Advice on ECM business/IPOs and Best M&A Advice.
Private Bank net revenues were € 2.3 billion, down 3% year on year. Net interest income declined by 7% in an environment of stabilizing interest rates; this was partly offset by growth in investment products, reflecting the Private Bank’s strategy of growing noninterest income. Revenues in Personal Banking were down 7% year on year; the impact of higher hedging costs, and higher funding costs including the impact of the discontinuation of remuneration for minimum reserves by the ECB, was partly offset by double-digit growth in deposit revenues and growth in lending revenues. Revenues in Wealth Management & Private Banking grew by 3% year on year, as double-digit growth in lending and higher revenues in investment products more than offset a decline in deposit revenues. Assets under management grew by a further € 7 billion during the quarter to € 613 billion, driven by net inflows of € 7 billion. For the first six months, Private Bank net revenues were € 4.7 billion, down 3% year on year. A 6% year-on-year decline in Personal Banking revenues, to € 2.6 billion, was partly offset by 2% growth in Wealth Management & Private Banking revenues to € 2.1 billion. Net inflows for the first six months of 2024 were € 19 billion, up from € 10 billion in the prior year period. Assets under management, at € 613 billion, were € 48 billion higher than at the end of the first half of 2023.
Asset Management net revenues were € 663 million in the second quarter, up 7% on the second quarter of 2023. Management fees were € 613 million, up 6%, predominantly in liquid products, driven by growth in average assets under management. Performance and transaction fees were € 10 million, down from € 57 million in the prior year quarter, driven by a non-recurrence of the prior year period performance fees in Alternatives. Assets under management were € 933 billion at the end of the quarter, compared to € 941 billion at the end of the previous quarter. The negative impact of net outflows of € 19 billion, driven by lower-margin mandates in Fixed Income and Advisory Services and partly offset by continued inflows in Passive, was partly counterbalanced by the positive impact of rising market levels. For the first six months, net revenues were € 1.3 billion, up 6% year on year, driven by 5% growth in management fees to € 1.2 billion; this more than offset a decline in performance and transaction fees to € 27 million, from € 68 million in the prior year period. Assets under management, at € 933 billion, were € 74 billion higher than at the end of the first half of 2023.
Expenses: adjusted costs remain in line with quarterly guidance for 2024
Noninterest expenses were € 6.7 billion in the second quarter, up from € 5.6 billion in the second quarter of 2023, or € 5.4 billion excluding the Postbank litigation provision, 4% lower than noninterest expenses in the prior year quarter. Nonoperating costs were € 1.7 billion, up from € 655 million in the second quarter of 2023, predominantly driven by this provision; restructuring and severance charges related to strategy implementation were € 106 million, down from € 260 million in the prior year quarter.
Adjusted costs were € 5.0 billion in the second quarter, in line with the bank’s quarterly adjusted cost guidance for 2024 and up 2% compared to the second quarter of 2023. As anticipated, compensation and benefits expenses were higher, reflecting wage growth, higher accruals for variable compensation and strategic growth initiatives including hiring and the acquisition of Numis; this was largely offset by lower technology costs, reflecting the bank’s efforts to streamline its technology platform, and reductions in professional services expenses.
The workforce was 89,470 internal full-time equivalents (FTEs) at the end of the second quarter, a reduction of 854 during the quarter. Strategic hiring, which has added around 900 roles in business growth, technology and controls year to date, and continued internalizations, were more than offset by leavers during the period, reflecting operational efficiency measures.
For the first six months, noninterest expenses were € 12.0 billion, up 9% from € 11.1 billion in the prior year period. Excluding the Postbank litigation provision, noninterest expenses were € 10.7 billion, 4% lower than noninterest expenses in the prior year period. Adjusted costs were down 2% year on year to € 10.1 billion.
Provision for credit losses remains contained
Provision for credit losses was € 476 million in the quarter, up from € 401 million in the prior year quarter and from € 439 million in the first quarter of 2024. In the second quarter of 2024, provisions for performing (Stage 1 and 2) loans were € 35 million, driven by portfolio movements and the net effect of overlays. Provision for non-performing (Stage 3) loans were € 441 million in the quarter, down from € 471 million in the previous quarter. This reduction was driven by the Private Bank and partly offset by an increase in the Corporate Bank, primarily driven by a small number of individual defaults; provisions in the Investment Bank were stable quarter on quarter and remain largely related to Commercial Real Estate.
For the first six months, provision for credit losses was € 915 million, compared to € 772 million in the prior year period. Corporate Bank provisions were up 9% year on year at € 198 million, while Private Bank provisions were down 11% to € 367 million, 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. This reflects commercial real estate provisions which are moderately lower, although improving at a slower-than-expected pace, as well as improvements in the Corporate Bank.
Solid capital, liquidity and funding metrics
The Common Equity Tier 1 (CET1) capital ratio improved to 13.5% in the quarter, due to higher common equity tier 1 capital reflecting lower regulatory capital deduction items, while strong underlying earnings were offset by the negative impact of the Postbank litigation provision. RWA growth due to higher operational risk and market risk RWA was largely offset by progress on the Capital Efficiency program during the quarter. On July 11, 2024, the bank completed its € 675 million share repurchase program, taking total capital distributions, including the bank’s € 0.45 per share dividend paid in May 2024, to € 1.6 billion in 2024 to date.
The Leverage ratio rose slightly from 4.5% to 4.6% during the second quarter. This increase was mostly due to the bank’s € 1.5 billion issuance of Additional Tier 1 (AT1) bonds during the quarter. Leverage exposure was materially unchanged at € 1,262 billion at the end of the quarter.
The Liquidity Coverage Ratio was 136% at the end of the quarter, stable compared to the end of the previous quarter, above the regulatory requirement of 100% and representing a surplus of € 58 billion. The Net Stable Funding Ratio was 122%, above the bank’s guidance range of 115-120% and representing a surplus over requirements of € 110 billion. Deposits rose by € 6 billion to € 641 billion during the quarter.
Sustainable Finance: cumulative volumes since 2020 reach € 322 billion
Sustainable Financing and ESG investment volumes ex-DWS³ were € 21 billion in the quarter, bringing the cumulative total since January 1, 2020 to € 322 billion. In the second quarter of 2024, Deutsche Bank’s businesses contributed as follows:
Corporate Bank: € 4 billion in sustainable financing, raising the business’s cumulative total since January 1, 2020 to € 62 billion
Investment Bank: € 16 billion, comprising € 5 billion in sustainable financing and € 11 billion in capital market issuance, raising the division’s cumulative total since January 1, 2020 to € 196 billion
Private Bank: € 2 billion growth in ESG assets under management and new client lending, raising the Private Bank’s cumulative total since January 1, 2020 to € 64 billion
Notable transactions included:
Involvement as Senior Mandated Lead Arranger and Hedging Bank on H2 Green Steel’s € 4.2 billion project financing for the world’s first large scale green steel plant, with an integrated green hydrogen and green iron production in Northern Sweden.
Acting as Joint Bookrunner, Sole Ratings Advisor, and Sole Green Structuring Agent for Continuum’s US$ 650 million Senior Secured Green Notes. This was the fourth consecutive capital market transaction for Continuum, a leading renewable energy provider in India which was left led by Deutsche Bank
Acting as Lender to HES International, a leading European multi-purpose bulk terminal operator, for its € 1 billion refinancing. The transaction is structured as a sustainability-linked loan with KPIs closely aligned to the company’s transition plan to phase out thermal coal over time and diversify its portfolio towards other commodities.
The bank issued its inaugural Social Bond on July 3, 2024, raising € 500 million to support the financing of affordable housing and access to essential services for low-income families and elderly and vulnerable people in the US. The issue saw strong demand from investors and was 13 times oversubscribed.
In its own operations, Deutsche Bank amended its Code of Conduct and rolled out a mandatory group-wide awareness training in early July on how to handle sustainability-related risks in line with European Banking Authority’s Final Report on Greenwashing. The bank also launched two new Corporate Social Responsibility programs providing financial education to low-income women in India and migrant children in China.
Deutsche Bank’s progress was recognized by a number of awards, including:
Best ESG Advice in the FINANCE Magazine’s 2024 bank survey
The Times Top 50 Employers for Gender Equality 2024
Financial Services Employer of the Year at the InsideOut Mental Health Awards
“Best ESG Solution” awards in China, Indonesia and India and “Best Trade Finance Solution” for three ESG transactions at the 2024 The Asset awards
Attica Bank – Deutsche Bank: 63 εκατ. ευρώ στην Jasper Wind Α.Ε. για την κατασκευή 3 αιολικών πάρκων στη Λακωνία
Στην υπογραφή δανειακής σύμβασης με την Jasper Wind Α.Ε., για τη χρηματοδότηση έργων ανανεώσιμων πηγών ενέργειας στην Πελοπόννησο, προχώρησαν η Attica Bank και η Deutsche Bank.
Πρόκειται για τη χρηματοδότηση της κατασκευής και λειτουργίας τριών αιολικών πάρκων, συνολικής δυναμικότητας 41 MW, στον Νομό Λακωνίας, ποσού 63 εκατ. ευρώ. Το έργο, συνολικού ύψους 80 εκατ. ευρώ, έχει χρηματοδοτηθεί με μακροπρόθεσμο δανεισμό και ίδια κεφάλαια της Jasper. Η κατασκευή των έργων ξεκίνησε το 2023, εκτελείται με ταχείς ρυθμούς και η έναρξη λειτουργίας τοποθετείται για τον Σεπτέμβριο του 2024.
Η Attica Bank ενήργησε ως Lead Arranger και η Deutsche Bank ως Structuring Bank, σηματοδοτώντας τη συνεργασία της Τράπεζας σε έργα Ανανεώσιμων Πηγών Ενέργειας με έναν από τους σημαντικότερους χρηματοπιστωτικούς ομίλους της Ευρώπης.
Η Jasper Αιολική Ελλάδος, ιδρυθείσα το 1998, είναι πρωτοπόρος στον τομέα της ανανεώσιμης ενέργειας σε αιολικά και φωτοβολταϊκά, είναι δε σήμερα η μεγαλύτερη ανεξάρτητη ελληνική εταιρεία παραγωγής ενέργειας (IPP – Independent Power Producer), με εγκαταστημένη ισχύ που πλησιάζει τα 200 MW με την ολοκλήρωση και των τριών νέων αιολικών. Τα έργα της σε ανάπτυξη ξεπερνούν τα 1000 MW σε Ελλάδα, Βουλγαρία και Ρουμανία.
Η Διευθύνουσα Σύμβουλος της Attica Bank, κυρία Ελένη Βρεττού, δήλωσε σχετικά: «Το επενδυτικό σχέδιο της Jasper, μιας ελληνικής εταιρείας ενέργειας, αποτελεί έμπρακτη απόδειξη των δυνατοτήτων των εγχώριων επιχειρήσεων να επενδύσουν στην πράσινη μετάβαση. Η συμμετοχή στην δόμηση και τη χρηματοδότηση της επένδυσης της εταιρείας για την κατασκευή τριών αιολικών πάρκων από την Attica Bank υπογραμμίζει τη δυναμική που έχει αναπτύξει η Τράπεζά μας σε χρηματοδοτήσεις έργων ΑΠΕ, μέσω της μονάδας Structured Finance που δημιουργήσαμε το 2023. Η συνεργασία με την Deutsche Bank αποτελεί ψήφο εμπιστοσύνης στον μετασχηματισμό και τις προοπτικές τόσο της Attica Bank, όσο και της χώρας στη μετάβαση προς τη βιώσιμη ανάπτυξη».
Ο κ. Paul Battelle, επικεφαλής του τομέα Χρηματοδότησης Ενεργειακής Μετάβασης της Deutsche Bank, δήλωσε: «Η Ελλάδα έχει μπει σε μία νέα τροχιά μετά την οικονομική κρίση. Ο τομέας των ανανεώσιμων πηγών ενέργειας είναι ιδιαίτερα σημαντικός για τη χώρα και την Ευρώπη και είμαστε πολύ ικανοποιημένοι που η Deutsche Bank είναι σε θέση να υποστηρίξει αυτή τη συναλλαγή. Είμαστε εξίσου χαρούμενοι για τη συνεργασία μας με τη μονάδα Structured Finance της Attica Bank για τη δόμηση της χρηματοδότησης των τριών αιολικών πάρκων, καθώς και για την υποστήριξη του ομίλου Jasper στην ανάπτυξη του χαρτοφυλακίου του. Ο επαγγελματισμός και η αφοσίωση όλων των εμπλεκομένων ήταν παράγοντας κλειδί για τη δημιουργία μιας πολύπλοκης χρηματοοικονομικής δομής και για την επιτυχημένη ολοκλήρωσή της».
Ο κ. Μάνθος Τζιαμούρτας, Πρόεδρος της Jasper Group, ανέφερε: «Με μεγάλη μας χαρά ολοκληρώσαμε την χρηματοδότηση ακόμα τριών αιολικών πάρκων ισχύος 41 MW στην περιοχή των Μολάων Λακωνίας. Η Jasper έμπρακτα συμμετέχει στην μετάβαση σε πράσινη ενέργεια και κυκλική οικονομία, υποστηρίζοντας το Ελληνικό Σχέδιο για την Ενέργεια και το Κλίμα (ΕΣΕΚ), καθώς και των χωρών όπου διατηρεί έργα. Είμαστε σε στενή συνεργασία με τους Δήμους Μονεμβάσιας και Ευρώτα, με σκοπό να στηρίξουμε τις τοπικές κοινωνίες σε πολλαπλά επίπεδα, και ευχαριστούμε όλους τους συνεργάτες μας, τα δημοτικά συμβούλια, τους Δημάρχους και τους δημότες για την βοήθειά τους στην υλοποίηση του έργου. Η συνεργασία με την Attica Bank και την Deutsche Bank είναι μεγάλο δείγμα εμπιστοσύνης και τιμής προς την εταιρεία μας και την ομάδα της Jasper».
Deutsche Bank completes € 675 million share buyback program
Deutsche Bank confirmed the successful completion of its € 675 million share buyback program announced on March 1, 2024. Between March 4 and July 11, 2024, 46.4 million shares, or 2.33% of the bank’s share capital, were repurchased at a volume weighted average price of € 14.53 per share.
Together with dividends of € 0.45 per share or € 0.9 billion distributed in May 2024, total distributions to shareholders have amounted to € 1.6 billion in 2024 to date. Cumulative distributions to shareholders from 2022 to 2024 to date have been € 3.3 billion. Management’s goal is to distribute in excess of € 8 billion to shareholders through dividends and share repurchases in respect of the financial years 2021 – 2025.
Deutsche Bank: Αύξηση 10% των κερδών στο α΄ τρίμηνο
Αύξηση 10% στα κέρδη της κατέγραψε στο α΄ τρίμηνο η Deutsche Bank, ξεπερνώντας τις προσδοκίες εν μέσω συνεχιζόμενης ανάκαμψης στο τμήμα της επενδυτικής τραπεζικής.
Τα καθαρά κέρδη ανήλθαν στα 1,275 δισ. ευρώ με τους αναλυτές που συμμετείχαν σε σχετική δημοσκόπηση της LSEG να αναμένουν 1,23 δισ. ευρώ.
Πρόκειται για τα υψηλότερα κέρδη πρώτου τρίμηνου από το 2013, ενώ καταγράφει κέρδη για 15 διαδοχικά τρίμηνα.
Τα έσοδα του Ομίλου αυξήθηκαν κατά 1% σε ετήσια βάση στα 7,8 δισεκατομμύρια ευρώ, τα οποία η τράπεζα απέδωσε στην αύξηση των προμηθειών και των εσόδων από προμήθειες.
Τα έσοδα της επενδυτικής της τράπεζας αυξήθηκαν κατά 13% στα 3 δισεκατομμύρια ευρώ, μετά από μια πτώση 9% σε όλο το 2023.
Ο δείκτης κεφαλαίου της πρώτης βαθμίδας μετοχών (CET1) -ένα μέτρο της φερεγγυότητας των τραπεζών- ήταν 13,4%, σε σύγκριση με 13,6% την ίδια περίοδο πέρυσι.
Η μεγαλύτερη τράπεζα της Γερμανίας κατέγραψε καθαρά κέρδη 1,3 δισ. ευρώ το προηγούμενο τρίμηνο και 1,16 δισ. ευρώ το πρώτο τρίμηνο πέρυσι.
Το 2023, η τράπεζα ανακοίνωσε ότι θα περικόψει 3.500 θέσεις εργασίας τα επόμενα χρόνια, καθώς στοχεύει 2,5 δισεκατομμύρια ευρώ σε λειτουργική αποτελεσματικότητα για να ενισχύσει την κερδοφορία και να αυξήσει τις αποδόσεις των μετόχων.
Deutsche Bank reports 10% year-on-year growth in profit before tax to € 2.0 billion in the first quarter of 2024
Deutsche Bank today announced profit before tax of € 2.0 billion for the first quarter of 2024, up 10% year on year. Post-tax profit was also up 10% year on year, to € 1.5 billion.
Deutsche Bank’s target ratios improved compared to the first quarter of 2023. Post-tax return on average tangible shareholders’ equity (RoTE)¹ was 8.7%, up from 8.3% in the first quarter of 2023, as profit growth more than offset higher tangible shareholders’ equity driven by organic capital generation. Post-tax return on average shareholders’ equity (RoE)¹ was 7.8% in the quarter, up from 7.4% in the prior year quarter. The cost/income ratio improved to 68%, from 71% in the prior year quarter. Diluted earnings per share improved to € 0.69, from € 0.61 in the prior year quarter.
“This was a quarter of delivery on commitments,” said James von Moltke, Chief Financial Officer. “Our revenue and franchise momentum reflects our investments in capital-light businesses and close partnership across the Group to support clients. Tight management of costs, capital and balance sheet, combined with continued investments in technology and controls, is the result of execution discipline right across our platform.”
Continued delivery of the Global Hausbank strategy
Deutsche Bank maintained its momentum in executing on its Global Hausbank strategy during the first quarter. This included:
Revenue growth: revenues grew by 1% in the first quarter of 2024, as 11% year on year growth in commissions and fee income more than offset lower net interest income as interest rates stabilized. The bank’s compound annual revenue growth rate since 2021 over the last twelve months was 6.0% at the end of the first quarter, within the bank’s raised target range of between 5.5% and 6.5%. Assets under management grew by € 72 billion across the Private Bank and Asset Management during the quarter, including net inflows of € 19 billion, which is expected to support future revenue growth in these businesses.
Operational efficiency: in reducing noninterest expenses to € 5.3 billion, the bank also reduced adjusted costs to € 5.0 billion in the first quarter, in line with its target quarterly run-rate objective for 2024. Deutsche Bank made further progress on its € 2.5 billion Operational Efficiency program during the quarter, including optimization of the bank’s platform in Germany and workforce reduction, particularly in non-client facing roles. Savings either realized or expected from completed efficiency measures grew to € 1.4 billion, including approximately € 1.0 billion in realized savings to date.
Capital efficiency: Deutsche Bank delivered RWA reductions of a further € 2 billion during the quarter through securitization and data and process improvements. As a result, cumulative RWA reductions from capital efficiency measures reached € 15 billion, representing further progress toward the bank’s objective of € 25-30 billion in optimizations by 2025. The bank made progress on its share repurchase program launched on March 4, 2024; as at April 19, 2024, the bank had repurchased 20.6 million shares for a total of € 283 million. The bank anticipates materially completing the current program by the end of the first half of 2024.
Revenue growth in challenging conditions
Net revenues were € 7.8 billion, up 1% over the prior year quarter at Group level and up 3% overall in the bank’s four operating businesses². Growth of 11% in commissions and fee income, reflecting management’s objective to grow capital-light business areas, was partly offset by a year-on-year decline in net interest income, as anticipated, in an environment of stabilizing interest rates. Revenue development in the bank’s businesses was as follows:
Corporate Bank net revenues were € 1.9 billion, down 5% year on year compared with the first quarter of 2023 which marked the revenue peak of the current interest rate cycle. Net interest income was lower year on year as expected, reflecting normalizing deposit revenues, lower loan net interest income and the discontinuation of minimum reserve remuneration by the ECB. This development was partly offset by a rise in commissions and fee income. Revenues in Corporate Treasury Services were € 1.1 billion, a decline of 10%, partly offset by growth of 4% in Institutional Client Services revenues to € 463 million, and 3% growth in Business Banking revenues to € 346 million. Deutsche Bank ranked no. 1 in 17 categories in the 2024 Euromoney Trade Finance Survey, up from 14 in 2023, including Best Trade Finance Bank in Germany for the 12th year running and Best Trade Finance Bank in Western Europe for the 7th consecutive year.
Investment Bank net revenues were € 3.0 billion, up 13% over the first quarter of 2023. Fixed Income & Currencies (FIC) revenues were up 7% to € 2.5 billion. This development was driven in part by 14% year on year growth in Financing revenues to € 805 million, largely reflecting strong securitization and issuance activity. Credit Trading revenues grew significantly year on year, reflecting the benefits of investments in prior periods. Emerging Markets revenues were significantly higher, with growth across regions, and Latin America seeing strong client activity driven by the investments. Foreign Exchange revenues were also higher, driven in part by the non-recurrence of the extreme interest rate volatility and market dislocations in March 2023 which impacted the prior year quarter, and as the benefits of a refocused business model materialize. Growth in these areas more than offset a decline in Rates revenues from the very high levels of the prior year quarter. Origination & Advisory revenues grew 54% to € 503 million, the highest level for 9 quarters, driven by Debt Origination revenues which rose 67% year on year to € 355 million, reflecting a recovery in the leveraged debt market and robust investment grade issuance. This growth also reflected improved market activity and market share gains; Deutsche Bank’s share of global Origination & Advisory improved by around 70 basis points over the year 2023 to 2.6% in the quarter (source: Dealogic).
Private Bank net revenues were € 2.4 billion, down 2% year on year, as slightly lower net interest income was partly offset by growth in investment products, in line with the business’s strategy to grow noninterest income. Revenues in Personal Banking were down 4% year on year, reflecting higher hedging costs and higher funding costs including the impact of the discontinuation of minimum reserve remuneration, partly offset by higher deposit revenues. Revenues in Wealth Management & Private Banking remained stable year on year as lower deposit revenues were offset by growth in lending and investment product revenues. Assets under management grew by € 27 billion during the quarter to € 606 billion, their highest level since the formation of the Private Bank in 2018. Growth was driven in part by net inflows of € 12 billion, the highest for 12 quarters, including € 6 billion in investment products in Wealth Management & Private Banking. In the Euromoney Global Private Banking Awards 2024, announced at the end of the quarter, Deutsche Bank won 15 awards including World’s Best for Entrepreneurs, World’s Best for Ultra High Net Worth and Germany’s Best Domestic Private Bank.
Asset Management net revenues were € 617 million, up 5% over the prior year quarter. Management fees grew by 4% to € 592 million, predominantly in liquid products, driven by an increase in average assets under management. Performance & Transaction fees grew 56% to € 17 million, reflecting higher transaction fees in Alternatives. Net inflows were € 8 billion, or € 9 billion ex-Cash, and were driven predominantly by Passive products. Net inflows included € 2 billion into Environmental, Social and Governance (ESG) products. Assets under management grew by € 45 billion to € 941 billion during the quarter, € 101 billion higher than at the end of the prior year quarter, reflecting consecutive quarters of positive net inflows and rising market levels.
Expenses: delivery in line with commitment on quarterly adjusted costs
Noninterest expenses were € 5.3 billion in the quarter, down 3% compared to the prior year quarter. A 6% reduction in adjusted costs to € 5.0 billion, consistent with the bank’s guidance for the quarterly run-rate in 2024, more than offset higher nonoperating costs versus the prior year quarter.
Adjusted costs of € 5.0 billion, down 6%, primarily reflected lower bank levies, which more than offset a rise of 9% in compensation and benefits expenses compared to the prior year quarter. This development was driven in part by an increase of 3,611 full-time equivalents (FTEs) in the internal workforce compared to the first quarter of 2023, reflecting investments in business growth, including the acquisition of Numis in the UK, together with further investments in technology and controls and the continued internalization of external staff. Investments and internalizations were partly offset by headcount reductions as part of the bank’s Operational Efficiency program.
Nonoperating costs were € 262 million, up from € 89 million in the first quarter of 2023. Litigation charges were € 166 million, up from € 66 million in the prior year quarter, and restructuring and severance charges were € 95 million, compared to € 23 million in the prior year quarter and driven in part by the implementation of the bank’s Operational Efficiency program.
Credit provisions lower quarter on quarter, with full-year guidance reaffirmed
Provision for credit losses was € 439 million, or 37 basis points of average loans, down from € 488 million in the fourth quarter of 2023. Provision for non-performing (Stage 3) loans was € 471 million, up 3% from € 457 million in the previous quarter, driven by provisions in the Private Bank, including provisions relating to the operational backlog which are expected partly to reverse in future quarters as the backlog is processed; and in the Investment Bank which, as previously communicated, continues to be affected by provisions on commercial real estate exposures.
This development was more than offset by net releases of performing (Stage 1 and 2) loans of € 32 million, driven by improved macro-economic forecasts as well as model recalibration effects, compared to provisions of € 30 million in the previous quarter. For the full year 2024, provisions for credit losses are expected to remain at the higher end of the previously communicated guidance range of 25-30 basis points of average loans.
Solid capital ratio supports distributions to shareholders and business growth
The Common Equity Tier 1 (CET1) capital ratio was 13.4% at the end of the first quarter of 2024, compared to 13.7% at the end of the fourth quarter of 2023. Organic capital generation through strong first-quarter earnings partly offset deductions for the € 675 million share buyback program approved by the ECB in January 2024, and for future capital distributions in line with the bank’s commitment to a 50% payout ratio in respect of the financial year 2024, together with an RWA increase of € 5 billion to € 355 billion in the quarter, largely driven by business growth.
The Leverage ratio was 4.5% at the end of the first quarter, essentially unchanged from the end of the previous quarter. Leverage exposure was € 1,254 billion, also essentially unchanged, as higher trading related exposures were offset by lower cash balances.
The Liquidity Coverage Ratio was 136% at the end of the quarter, compared to 140% at the end of the fourth quarter of 2023, above the regulatory requirement of 100% and representing a surplus of € 58 billion. High Quality Liquid Assets were € 222 billion at the end of the quarter, up slightly from the end of the previous quarter. The Net Stable Funding Ratio was 123%, above the bank’s target range of 115-120%, representing a surplus of € 112 billion above required levels. Customer deposits rose by € 13 billion to € 635 billion during the quarter.
For Deutsche Bank’s Annual General Meeting on May 16, 2024, the Management Board and the Supervisory Board have proposed the payment of a cash dividend of € 0.45 per share in respect of the financial year 2023, up 50% over 2022.
Sustainable Finance: cumulative volumes since 2020 reach € 300 billion
Environmental, Social and Governance (ESG)-related financing and investment volumes ex-DWS³ were € 21 billion in the quarter, bringing the cumulative total since January 1, 2020 to € 300 billion. In the first quarter of 2024, Deutsche Bank’s businesses contributed as follows:
Corporate Bank: € 6 billion in sustainable financing, raising the business’s cumulative total since January 1, 2020 to € 59 billion
Investment Bank: € 13 billion, comprising € 3 billion in sustainable financing and € 9 billion in capital market issuance, raising the division’s cumulative total since January 1, 2020 to € 179 billion
Private Bank: € 3 billion growth in ESG assets under management and new client lending, raising the Private Bank’s cumulative total since January 1, 2020 to € 62 billion
During the first quarter, Deutsche Bank participated in a € 4.4 billion non-recourse project financing for Automotive Cells Company to enable the development of three gigafactories for lithium-ion battery cell production across Europe. The bank also published its revised Sustainable Finance Framework, which includes updated criteria for classifying financings as sustainable, as well as a new Sustainable Instruments Framework for the issuance of social bonds. The rating agency ISS ESG granted this framework its highest possible assessment grade.
Deutsche Bank received a rating upgrade from the non-profit rating agency CDP (formerly Carbon Disclosure), indicating that the bank is above industry average in all categories. At the bank’s 2024 Annual General Meeting, management will discuss with shareholders its proposal to link parts of Management Board compensation for 2024 to the carbon emission sectoral targets for the corporate loan portfolio.
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Deutsche Bank hires Dino Siason to be Chief Country Officer for the Philippines
Deutsche Bank announced it has hired Rodolfo ML Siason (Dino) to be Chief Country Officer and Head of Corporate Bank for the Philippines, effective April 1, 2024, subject to necessary regulatory approvals.
Siason will lead Deutsche Bank’s 1,500 strong platform in the Philippines. He will be responsible for the Corporate Bank and Investment Bank, along with one of the bank’s two key service hubs in Asia Pacific, serving critical back and middle office functions globally. Siason will replace Michael Chua, who is retiring after working in the banking industry for nearly 30 years.
Under Chua’s leadership as CCO, Deutsche Bank’s Philippines business achieved significant revenue growth and successfully executed a number of landmark transactions.
Siason will report to Burkhard Ziegenhorn, Head of Corporate Bank for Southeast Asia and Australia and Kaushik Shaparia, CEO, Emerging Asia and Chief Country Officer of India.
Siason brings more than 20 years of financial institutions experience to this role and spent nearly 18 years with Citibank in the Philippines, Singapore and the Czech Republic. Most recently, he was Citi’s Head of Treasury and Trade Solutions for the Central Europe Cluster, based in Prague. Throughout his career, he has held a wide range of roles across credit, client coverage and franchise management, with a strong focus on enabling clients to become more global. Siason will relocate to Manila.
Burkhard Ziegenhorn said: “Dino will play a leadership role in taking our Corporate Bank in the Philippines to the next level. His global client coverage and product expertise combined with his deep local market knowledge, will help further differentiate Deutsche Bank in the Philippines/ We are thankful to Mike for his dedicated leadership with the bank; he hands over a strong platform poised for further success. We have built many trusted and valued relationships here over past decades, and I am confident that Dino will significantly enhance and grow these over the years to come.”
Kaushik Shaparia commented: “We are proud of our 48-year history in the Philippines and committed to growing in this increasingly important market. We’re delighted that our strong platform has attracted high quality talent like Dino, and look forward to him leading our franchise from strength to strength in the Philippines.”
Deutsche Bank first launched its presence in Manila in 1977 and obtained its full commercial banking license in 1995. In 2023, Deutsche Bank Philippines was recognized by Euromoney as ‘Best Trade Finance Service Provider’ for the sixth consecutive year and ‘Best Cash Management Service Provider for Corporates’. The Asset also awarded the bank ‘Best Domestic Custodian’ for the sixth consecutive year and ‘Best in Treasury and Working Capital Multinational Company’.
Deutsche Bank strengthens Shariah custody offering in Southeast Asia
Deutsche Bank has partnered with CIMB, one of Malaysia’s largest banks, to provide Shariah custody (the servicing of funds that are compliant with Shariah law) to clients in Malaysia. In addition, the bank has been appointed by CIMB to support its foreign custody services with its CustodyOne product.
The partnership involves Deutsche Bank complementing its existing Shariah custody function with CIMB’s, to offer clients in Malaysia regulatory compliant services (in line with guideline changes made by the Securities Commission in late 2022). The majority of targeted clients are fund managers governed by the Securities Commission’s guidelines for Shariah capital markets products.
Also in Southeast Asia, Deutsche Bank has launched new Shariah compliant custody capabilities in Singapore, which will complement its CustodyOne offering, making global access simple for clients. As a global bank with a strong presence in Singapore, Deutsche Bank is focused on meeting the growing demand for Shariah custody, particularly as domestic clients are expanding their operations across ASEAN.
Deutsche Bank’s Head of Securities Services for ASEAN, Samir Dhamankar said: “We are pleased to partner with CIMB Islamic, being one of the top banking institutions in the ASEAN region as well as a cornerstone of the Malaysian banking landscape. Together, we can offer our clients market-leading Shariah custody that meets industry standards and fulfils regulatory requirements in Malaysia. We are committed to the ASEAN region and helping our clients grow in this unique and increasingly important segment.”
Ahmad Shahriman Mohd Shariff, Chief Executive Officer of CIMB Islamic added, “CIMB Islamic remains at the forefront of offering attractive propositions to cater to the growing demand for Shariah compliant products and services. We are pleased to partner with Deutsche Bank to strengthen their Shariah services and deliver on our long-term growth objectives of advancing Islamic finance, in line with Bank Negara Malaysia’s Financial Sector Blueprint.”
CIMB Group’s Co-Chief Executive Officer of Group Commercial and Transaction Banking, Lawrence Loh said, “As a leading financial intermediary, we continuously foster strategic partnerships that prioritise the needs of our valued customers. This partnership augurs that drive, and we are pleased to collaborate with Deutsche Bank, not only to support their clients in Malaysia, but to expand our foreign custody services in over 100 markets.”
Shariah funds globally held $105 billion in assets under management as of the end of Q2 2023 and Malaysia held the largest share of this total with 27%. Southeast Asia accounts for 80% of Asia Pacific’s total Shariah banking assets and market growth is forecasted at 8% over the next two years. Malaysia and Indonesia are the most dominant markets for Shariah banking in Asia Pacific.
Photo: (From left) Anand Rengarajan, Global Head of Sales & Head of Asia, Pacific, Securities Services, Deutsche Bank; Sylvia Beh, CEO, Deutsche Trustees Malaysia Berhad; Margaux Blumenfeld, Head of APAC Coverage, Non-Bank Financial Institutions & Head of Securities Services Sales, South Asia, Deutsche Bank; Richard Lim, Head of Securities Services Malaysia, Deutsche Bank (Malaysia) Berhad; Datin Ezreen Eliza Zulkiplee, Head of Securities Services and CEO of CIMB Commerce Trustee Berhad & CIMB Islamic Trustee Berhad; Lawrence Loh, Co-CEO, Group Commercial & Transaction Banking, CIMB and Ahmad Shahriman Shariff, CEO, CIMB Islamic at a recent signing ceremony.
Η Deutsche Bank αναβαθμίζει τις βρετανικές ασφαλιστικές, αλλά υποβαθμίζει την Aviva
Η Deutsche Bank αναβάθμισε τις αξιολογήσεις της για τις ασφαλιστικές Direct Line Group, Legal & General και M&G από ‘hold’ σε ‘buy’, αλλά υποβάθμισε την αξιολόγησή της για την Aviva.
Ειδικότερα για την Direct Line, η τράπεζα σημειώνει ότι οι μετοχές έχουν υποχωρήσει κατά περίπου 60% τα τελευταία τρία χρόνια λόγω της χαμηλής κερδοφορίας, της τεταμένης κεφαλαιακής βάσης και της ανάγκης για προβλέψεις.
«Ωστόσο, πιστεύουμε ότι αυτό είναι στον καθρέφτη οπισθοπορείας και ότι θα δούμε στοιχεία ότι ο όμιλος οδηγείται στον σωστό δρόμο: πρώτον, μέσω επαναφοράς μερίσματος με τα αποτελέσματα του 2023· δεύτερον, με επέκταση του περιθωρίου κέρδους από τις τιμές πάνω από την αγορά και, τρίτον, με την αύξηση του όγκου το 2024. Αυτό θα πρέπει να υποστηριχθεί από μια ανανεωμένη στρατηγική από τον εισερχόμενο διευθύνοντα σύμβουλο», ανέφερε η τράπεζα.Η Deutsche Bank αύξησε την τιμή-στόχο της για τη μετοχή από 170p σε 250p, προτείνοντας περίπου 30% άνοδο από τα τρέχοντα επίπεδα.
Αντίθετα, η τράπεζα μείωσε την αξιολόγησή της για την ασφαλιστική εταιρεία ζωής Aviva από «buy» σε «hold» και μείωσε την τιμή στόχο της από 495p σε 485p, αφήνοντας ερωτηματικά σχετικά με την υπερβάλλουσα επιστροφή κεφαλαίου.
Deutsche Bank: Ετήσια πτώση 8% στα κέρδη γ΄ τριμήνου
Καθαρά κέρδη ύψους 1,031 δισ. ευρώ (1,06 δισ. δολάρια) κατέγραψε στο γ΄ τρίμηνο η Deutsche Bank, παρά την πτώση κατά 8% σε σχέση με το προηγούμενο έτος, ξεπερνώντας ελαφρώς τις προσδοκίες, καθώς οι αναλυτές ανέμεναν καθαρά κέρδη στα 997 εκατ. ευρώ, σύμφωνα με τα στοιχεία του LSEG.
Τα καθαρά κέρδη ήταν 35% υψηλότερα σε σχέση με το προηγούμενο τρίμηνο, παρά την ετήσια πτώση. Επίσης, πρόκειται για το 13ο συνεχόμενο κερδοφόρο τρίμηνο της Deutsche Bank από την έναρξη της μεγάλης κλίμακας αναδιάρθρωσης που ξεκίνησε το 2019.
Για την ίδια περίοδο το 2022, η γερμανική τράπεζα είχε καταγράψει καθαρά κέρδη ύψους 1,115 δισ. ευρώ, λόγω των υψηλότερων επιτοκίων και και της αυξημένης αστάθειας της αγοράς που ενίσχυσε το trading σταθερού εισοδήματος και νομισμάτων.
Τα συνολικά έσοδα για το τρίμηνο ανήλθαν σε 7,13 δισ. ευρώ, από 6,92 δισ. ευρώ το γ΄ τρίμηνο του 2022.