Deutsche Bank Q2 profit hits record €1.9bn

Deutsche Bank reported record second-quarter net profit of 1.9 billion euros, or $2.2 billion, helped by growth at its investment bank.

Germany's largest lender said total revenue from April to June rose nine percent from a year earlier to 8.48 billion euros. The profit figure was above the 1.4 billion euros expected by analysts in a FactSet poll.

Finance chief Raja Akram said on an earnings call that the result raised the prospect of the bank exceeding expectations for the year. He said Deutsche Bank was set to reach its revenue target and could be more optimistic if supportive conditions continued.

Profit at the investment bank rose almost 60 percent from the same period last year, supported by income gains in financing, trading and advisory operations. Deutsche Bank said retail banking also helped lift revenue.

The results came as banks continue to navigate a less favourable monetary environment. The European Central Bank raised rates by 0.25 percentage points last month, but banks' interest margins remain affected by a rate-cutting cycle that began in 2024.

Deutsche Bank also announced a new 500 million-euro share buyback programme for the second half of the year, after completing its current one-billion-euro tranche. Its shares were up 4.7 percent in Frankfurt at 0845 GMT.

Asked about UniCredit's potential hostile takeover of Germany's Commerzbank, Akram said the outcome would not change Deutsche Bank's strategy, but could help Deutsche if corporate clients wanted another German bank to keep their accounts diversified.