Deutsche Bank was still in the red in the summer. An agreement with former Postbank shareholders is now ensuring a positive development.
The back and forth in the legal dispute over the Postbank takeover gave Deutsche Bank a sharp jump in profits in the third quarter. Because the DAX group was able to partially release a provision from the second quarter, the bottom line was that shareholders received almost 1.5 billion euros. That was 42 percent more than a year earlier and more than analysts expected on average. When presenting the interim balance sheet on Wednesday, CEO Christian Sewing also considered buying back additional shares. He expressed confidence that he would be able to distribute more capital to shareholders than originally planned.
Deutsche Bank had worse news in the summer. Because of a provision in the Postbank legal dispute of 1.3 billion euros, it even slipped into the red. However, after reaching an agreement with a large number of the plaintiffs from the group of former Postbank shareholders, it was now able to redeem 440 million euros.
The board also reported positive developments from day-to-day business. CFO James von Moltke confirmed the goal of generating revenue of 30 billion euros this year. Management also sees the bank on track with its goals for 2025. Above all, the return on material equity should then reach more than 10 percent. In the third quarter it was even slightly above this mark at 10.2 percent. However, without the released provision it would have only been 7.6 percent.
Source: Stern
