Deutsche Bank Expects to Boost Shareholder Returns

Deutsche Bank shares experienced an increase on Wednesday following the publication of its third-quarter results. The German bank expressed optimism about its ability to enhance and accelerate shareholder returns through 2025 and beyond.

As of 0731 GMT, shares were trading 6.9% higher at EUR10.16.

Deutsche Bank highlighted the potential for releasing an additional 3 billion euros ($3.18 billion) by reducing risk-weighted assets and minimizing the expected impact of Basel III. This, in turn, will enable the bank to strengthen shareholder returns.

The bank disclosed that it had already distributed approximately EUR1.57 billion to shareholders between 2022 and the first nine months of 2023. Furthermore, it confirmed that it was on track to achieve its target of over EUR1 billion for this year, as well as EUR1.75 billion for both 2022 and 2023.

Deutsche Bank also indicated its plans for further share buybacks in 2024.

However, despite a 3% growth in revenue during the three months leading up to September 30, the bank reported a decline in net profit for the third quarter.

Analysts at Citi expressed confidence that the bank's prospects for enhanced capital returns would be well-received by shareholders. This sentiment was echoed by RBC Capital Markets analyst Anke Reingen, who viewed the potential for increased capital as a positive development.