By Cristina Roca
Deutsche Bank AG reported a sharp rise in second-quarter profit on Wednesday, but warned that the environment had become more challenging and that could weigh on its cost and profitability targets for the year.
The German lender’s closely watched after-tax profit rose to 1.21 billion euros ($1.22 billion) from 828 million euros a year earlier, while profit attributable to shareholders was 1.05 billion euros, compared to 692 million euros.
Analysts had expected an after-tax profit of 950 million euros, according to a consensus estimate provided by the company.
Quarterly revenue increased by 7% to 6.65 billion euros. Deutsche’s investment bank reported an 11% rise in revenue, while corporate banking revenue rose 26%.
Deutsche Bank supported its revenue target of 26-27 billion euros for the year despite a macroeconomic deterioration recorded during the quarter.
“However, the bank also recognizes increasing cost pressures due to factors beyond its control, including higher than expected bank levies, inflation, unforeseen costs related to the war in Ukraine and litigation,” it said. said Deutsche Bank. He now sees his 2022 cost-to-income ratio in the low to mid-70s percent, compared to earlier forecasts of 70%.
He backed his profit target, but said it would be more difficult to achieve.
Write to Cristina Roca at [email protected]