Deutsche Bank AG (DB) Q2 2023 Earnings Call Transcript

For the period ending June 30, 2023

July 26, 2023 5:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Ladies and gentlemen, thank you for standing by. Welcome and thanks for joining the Deutsche Bank Q2 2023 Analyst Conference Call.

Throughout today's recorded presentation, all participants will be in a listen-only mode. The presentation will be followed by a question-and-answer session. [Operator Instructions]

I would now like to turn the conference over to [indiscernible], Deputy Head of Investor Relations. Please go ahead.

Unidentified Company Representative

Thank you for joining us for our second quarter 2023 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 we currently expect. 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.

Christian Sewing

Thank you, Silke, and a warm welcome also from my side. It’s a pleasure to be discussing our second quarter and first half results with you today. These results provide a vital perspective of the progress we are making towards our objectives. For me, a few key points stand out.

First, we have strong growth momentum. Revenues in the first half year were up 8% to €15.1 billion, putting the upper end of our guidance range of €28 billion to €29 billion within reach. We also captured net inflows of €28 billion across the Private Bank and Asset Management. We are reaping the benefits of a complementary and well-balanced earnings mix. We are delivering strong growth in our Private Bank and Corporate Bank franchises, and resilience in key areas of our Investment Bank.

Second, we have proven our earnings power. We generated profit before tax of €3.3 billion in the first six months, up 2% over last year and the highest first half since 2011, after absorbing more than €700 million in non-operating costs, including restructuring related to operational efficiencies.

Excluding these non-operating costs, pre-tax profit would have been €4 billion, 21% higher than in the first half of 2022 on a comparable basis. Our post-tax RoTE was 6.8%, and would have been above 9%, excluding non-operating costs and with bank levies apportioned equally across the year; very close to our 2025 target, of above 10%.