Deutsche Bank is set to release its second-quarter results on Wednesday, offering valuable insights into the bank's performance. Here are the key details you should be aware of:
Revenue Forecast
Analysts have projected that Deutsche Bank will report second-quarter revenue of €7.06 billion ($7.85 billion). This figure represents an increase compared to the same period last year when the bank recorded total revenue of €6.65 billion.
Net Income Expectations
Industry analysts expect Deutsche Bank to announce a net profit of €713 million for the three-month period. This result would be compared to the €1.05 billion net profit reported in the second quarter of the previous year.
Areas to Monitor
Costs
According to research by Warburg Research analyst Andreas Plaesier, total costs for the quarter are anticipated to rise significantly due to restructuring and litigation expenses. The analyst estimates these costs to range between €600 million and €700 million. Non-interest expenses are predicted to increase by 16% compared to the previous year, reaching €5.64 billion. The company-provided consensus sets non-interest expenses at €5.53 billion, slightly lower than analysts' estimates. In the same period of the preceding year, non-interest expenses amounted to €4.87 billion.
Stay tuned for Deutche Bank's upcoming announcement, as it is sure to hold valuable insights into the bank's financial performance during the second quarter of 2022.
JOB CUTS
Deutsche Bank recently announced its plan to reduce senior non-client-facing positions by 5% during the second quarter. This initiative will lead to the elimination of approximately 800 jobs.
DIVISIONAL PERFORMANCES
The chief financial officer of Deutsche Bank, James von Moltke, stated last month that the bank is expecting a significant year-on-year decline in fixed-income trading revenue within its investment bank. During a Goldman Sachs conference in Paris, von Moltke projected a potential decrease of 15% to 20% in fixed-income trading revenue. However, he anticipated the origination and advisory business to remain "probably flat to up." Analyst Andreas Plaesier from Warburg Research predicts that the corporate and private banks will be the driving forces behind the group's quarterly revenue growth.
BUYBACKS
In April, Deutsche Bank revealed that it was in discussions regarding the implementation of share buybacks in the second half of the year. Analysts from Citi suggest that the depth of the initial repurchase will gain significant attention. They believe that a small buyback of around EUR100 million may be feasible in the latter half of the year.