Deutsche Bank, Germany’s largest lender, said on Wednesday its third-quarter profit rose sharply, helped by the settlement of an investor lawsuit related to its Postbank unit.
Net profit was 1.46 billion euros ($1.58 billion), an increase of 42% from the same period last year. Analysts polled by financial data firm FactSet had expected 1.32 billion euros.
Profits improved this year after a lawsuit was settled this year with some of Postbank’s former shareholders who had sued Deutsche Bank for shorting their shares in a 2010 takeover.
This allowed Deutsche Bank to reduce its reserves related to litigation.
Deutsche Bank CEO Christian Sewing said: “We have made significant progress in resolving our past litigation matters, while at the same time generating our highest-ever third-quarter profit in our operating business.” Ta.
Deutsche Bank posted a loss of 143 million euros in the second quarter after having to set aside huge provisions related to Postbank.
Following Wednesday’s results, Sewing said Deutsche Bank plans to apply for further share buybacks.
Sales in the July-September period rose 5% year-on-year to 7.5 billion euros, led by an 11% increase in investment banking and 11% in asset management.
This offset affects corporate and retail banking, with the positive impact of higher euro area interest rates fading.
Deutsche Bank has undergone a major reorganization in recent years, reducing its reliance on personal and corporate banking after facing multiple scandals during its aggressive transition into investment banking in the early 2000s. I’m trying to raise it.
This strategy mostly worked, and the bank made more profits.
