Q2 2026 Deutsche Bank AG Fixed Income Earnings Call Transcript
Key Points
- Deutsche Bank AG (DB) reported its highest-ever half-year post-tax profit of EUR4.1 billion, with revenues of EUR17.2 billion on track to meet the full-year ambition of around EUR33 billion.
- The company achieved a post-tax ROC of 11.9% and improved its cost-income ratio to 60.9%, positioning it well for its 2026 and 2028 targets.
- All divisions delivered returns on tangible equity of 12% or higher, with Asset Management seeing record net client flows of EUR25 billion in Q2 alone.
- Deutsche Bank AG (DB) has a positive fundamental rating outlook from all three major rating agencies (Fitch, S&P, Moody's), reflecting progress in transformation and earnings resilience.
- The bank's NII tailwind is strengthening, with approximately 90% of 2027 and 80% of 2028 NII benefits locked in through opportunistic hedging, reducing sensitivity to rate moves.
- Geopolitical uncertainty and potential inflation risks remain key macro concerns that could impact the operating environment and cause spread widening.
- The commercial real estate (CRE) portfolio, particularly the office sector on the West Coast, continues to face revaluation risks, prompting proactive de-risking measures.
- Increased competition for deposits in Germany, including from new US bank entrants with attractive promotional offers, could pressure deposit pricing and retention.
- Risk-weighted assets (RWAs) increased by EUR5 billion in Q2, driven by business growth in loans, commitments, and guaranteed funds, which could constrain capital flexibility.
- The upcoming call decision for a EUR AT1 bond (4.5% coupon) presents a potential refinancing challenge, as the reset coupon of roughly 7.3% is above current new issue levels.
Ladies and gentlemen, welcome to the Q2 2026 fixed income call. I am Matilda, the Chorus Call operator. I would like to remind you that all participants will be in listen-only mode, and the conference is being recorded. (Operator Instructions)
The conference must not be recorded for publication or broadcast. At this time, itâs my pleasure to hand over to Philip Teuchner, Investor Relations. Please go ahead.
Good afternoon or good morning, thank you all for joining us today. On the call, our Group Treasurer, Richard Stewart, will take us through some fixed-income specific topics. For the subsequent Q&A session, we also have our CFO, Raja Akram, with us to answer your questions. The slides that accompany the topics are available for download from our website at db.com. After the presentation, we will be happy to take your questions.
Before we get started, I just want to remind you that the presentation may contain forward-looking statements which may not develop as we
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