Deutsche Bank smashes profit expectations in fourth quarter as higher interest rates bolster revenue
Deutsche Bank on Thursday reported its 10th straight quarter of profit, receiving a boost from higher interest rates and favorable market conditions.
Deutsche Bank reported a 1.8 billion euro ($1.98 billion) net profit attributable to shareholders for the fourth quarter, bringing its annual net income for 2022 to 5 billion euros, a 159% increase from the previous year.
The German lender almost doubled a consensus estimate among analysts polled by Reuters of 910.93 million euro net profit for the fourth quarter, and exceeded a projection of 4.29 billion euros on the year.
Here are the other quarterly highlights:
- Loan loss provisions stood at 351 million euros, compared to 254 million euros in the fourth quarter of 2021.
- Common equity tier 1 (CET1) ratio — a measure of bank solvency — came in at 13.4%, compared to 13.2% at the end of the previous year.
- Total net revenue was 6.3 billion euros, up 7% from 5.9 billion euros for the same period in 2021, bringing the annual total to 27.2 billion euros in 2022.