Deutsche Bank is set to announce its fourth-quarter results on Thursday. So far this year, DB shares have experienced a 2.7% decrease in trading. Here are the key details to keep in mind:
Revenue Expectations
According to a company-compiled consensus, the German bank is expected to report revenue of 6.78 billion euros ($7.35 billion) for the quarter. This would be a comparison to the 6.32 billion euros in revenue generated during the fourth quarter of 2022.
Net Income Projection
Deutsche Bank’s net profit for the quarter is anticipated to be EUR832 million, as per a Visible Alpha consensus. In the last quarter of 2022, the bank achieved a net profit of EUR1.80 billion, largely due to a EUR1.4 billion tax benefit resulting from a deferred-tax-asset valuation adjustment.
Key Aspects to Monitor
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Analysts predict that the earnings boost from net interest income will continue to decline in its effectiveness. Warburg Research analyst Andreas Plaesier estimates a 3% year-on-year decrease in net interest income, amounting to EUR3.62 billion. This estimate is slightly more optimistic than the consensus, which forecasts a 6.7% decline to EUR3.49 billion according to Visible Alpha. Nonetheless, Deutsche Bank’s corporate and private banks’ net interest income should contribute to surpassing the company’s 2023 revenue guidance of EUR29 billion for the entire year.
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In the third quarter, Deutsche Bank indicated that it anticipates freeing up around EUR3 billion of additional capital by 2025. This capital could potentially be allocated towards shareholder returns in 2024.
Remember to stay updated with Deutsche Bank’s 4Q results to gain a better understanding of their financial performance.