Q2 2024 Deutsche Bank AG Fixed Income Earnings Call Transcript
Key Points
- Deutsche Bank AG (DB) reported strong revenue growth, achieving EUR15.4 billion in the first half of 2024, on track to meet the EUR30 billion target for the year.
- The bank's capital-light businesses, such as Corporate Bank and Origination & Advisory, are gaining market share, contributing to revenue growth.
- The cost-to-income ratio improved from 73% to 69% year on year, indicating better operational efficiency.
- The CET1 ratio remains solid at 13.5%, demonstrating capital strength despite absorbing significant litigation provisions.
- Deutsche Bank AG (DB) achieved a 17% year-on-year increase in pre-provision profit, reflecting positive operating leverage and strategic execution.
- The bank faced a significant litigation provision of EUR1.3 billion related to the acquisition of Postbank, impacting quarterly results.
- Non-interest expenses increased by 20% year on year, driven by higher litigation charges.
- Provision for credit losses was elevated at EUR476 million, with concerns about commercial real estate exposures.
- The bank's tax rate was impacted by largely non-deductible litigation charges, resulting in a high effective tax rate of 87% for the quarter.
- The Private Bank's profitability remains a challenge, with ongoing efforts needed to improve returns, particularly in the German personal banking segment.
Ladies and gentlemen, welcome to the Deutsche Bank Q2 2024 analyst conference call and live webcast. I'm Morita, Chorus Call operator. I would like to remind you that all participants will be in a listen-only mode and the conference is being. (Operator Instructions)
At this time, it's my pleasure to hand over to Ioana Patriniche, Head of Investor Relations. Please go ahead.
Thank you for joining us for our second quarter 2024 results call. As usual, our Chief Executive Officer, Christian Sewing, will speak first, followed by our Chief Financial Officer, James von Moltke. The presentation as always, is available to download in the Investor Relations section of our website, db.com.
Before we get started, let me just remind you that the presentation contains forward-looking statements which may not develop as it currently expects. We therefore ask you to take notice of the precautionary warning at the end of our materials.
With that, let me hand over to Christian.
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