Deutsche Bank: Investment Bank Still Drives Results

Deutsche Bank (DB or the Bank) reported a EUR 278 million profit attributable to shareholders for Q3 2020, up from a loss of EUR 77 million a quarter earlier, supported by lower credit costs and lower noninterest expenses. Investment banking revenues, albeit lower than in Q2 2020 were still strong, comparing favorably to peers. The negative impact from COVID-19 was most visible in the Corporate Bank, where low rates and lower client activity have driven down revenues compared to Q2 2020 as well as compared to the previous year. Private Banking and Asset Management revenues both recovered from a comparatively weak Q2 2020. In DBRS Morningstar's view the strong investment banking environment has helped DB remain on track with regards to its restructuring plan. However, as investment banking revenues normalise, revenues could come under pressure over the coming quarters.