Deutsche Bank AG (NYSE:DB) Q2 2024 Earnings Conference Call July 24, 2024 5:00 AM ET
Company Participants
Ioana Patriniche - Head, Investor Relations
Christian Sewing - CEO
James von Moltke - President & CFO
Conference Call Participants
Chris Hallam - Goldman Sachs Group
Nicolas Payen - Kepler Cheuvreux
Anke Reingen - RBC Capital Markets
Kian Abouhossein - JPMorgan Chase & Co.
Tom Hallett - KBW
Giulia Aurora Miotto - Morgan Stanley
Mate Nemes - UBS
Stefan Stalmann - Autonomous Research
Matthew Clark - Mediobanca
Jeremy Sigee - BNP Paribas Exane
Andrew Coombs - Citigroup
Ioana Patriniche
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 exists. 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 back to you on our end.
Christian Sewing
A warm welcome from me. I'm delighted to be discussing our second quarter and first half results with you today. After another quarter where we made progress across the businesses.
On our strategic initiatives, we are on track to hit our financial targets. We generated revenues of EUR15.4 billion in the first half on track to EUR30 billion of revenues this year. We have franchise momentum across all businesses, driving commissions and fee income. Our capital-light businesses are gaining market share such as our Corporate Bank and Origination & Advisory, which we expect to continue in the second half alongside a more supportive NI environment.
We also delivered on our adjusted cost target our quarterly run rate is at EUR5 billion, in line with our commitments. Our results were impacted by the litigation provision of EUR1.3 billion related to the acquisition of Postbank, which we had to book this quarter. As said before, we strongly disagree with the changed and unexpected assessment of the court, and we are working hard to ultimately minimize the impact of this legal matter for our shareholders. But importantly, the bank's operational performance was not impacted.
On the contrary, on an underlying basis, we delivered year-on-year improvements on our key target ratios. Excluding the Postbank takeover litigation provision, our post-tax return on tangible equity was 7.8%, up from 6.8% in the first half last year. The best first half and second quarter since 2011, which demonstrates the continued momentum in our operating businesses. Our cost-to-income ratio also improved from 73% to 69% year on year. And finally, our CET1 ratio of 13.5% remains solid despite absorbing Postbank and a number of legacy litigation matters, which shows our capital strength and gives us confidence to deliver on our capital distribution commitments.