Q3 profits rise instead of fall! Transformation nearing completion - Deutsche Bank's stunning financial report proves the effectiveness of reforms.

On Wednesday, Deutsche Bank Aktiengesellschaft (DB.US) announced a 7% year-on-year increase in third-quarter profits. Despite expectations in the market that profits would decline, the global investment banking division of the bank saw a significant increase in revenue, ultimately reversing this expectation. As Germany's largest lending institution, Deutsche Bank Aktiengesellschaft reported total revenue of 8.04 billion euros for the quarter, with net profit attributable to shareholders of 1.56 billion euros (approximately 1.82 billion US dollars). This data represents an increase from the 1.46 billion euros reported in the same period last year, and also surpasses analyst expectations of around 1.34 billion euros. Investment banking once again became the largest source of income for Deutsche Bank Aktiengesellschaft. Strong performance in bond trading and bond issuance businesses drove the growth of the investment banking division this quarter. The release of this data comes at a critical time as Deutsche Bank Aktiengesellschaft's three-year transformation plan is nearing completion, with efforts being made to achieve a series of goals that were previously questioned by some analysts. The bank's CEO, Christian Sewing, stated, "We are steadily advancing towards achieving our financial targets for 2025." "This has been a record quarter," said Chief Financial Officer James von Moltke in an interview, "with strong performance across our macro products and exceptional results from credit trading this quarter." Stable profitability trajectory This financial report marks nearly five years of consecutive quarterly profit growth for Deutsche Bank Aktiengesellschaft, offsetting the massive losses from previous years. These achievements are the result of a series of measures taken by Sewing to stabilize this globally important bank. The release of this quarterly report coincides with major European banks reporting their performances. Investors are closely watching how banks are responding to factors such as economic weakness, a strong euro, and trade wars. Deutsche Bank Aktiengesellschaft's investment banking business covers global markets from Sydney to New York, and revenue from this division grew by 18% this quarter, exceeding market expectations of 10.8%. Within this, the fixed income and forex trading revenue, considered one of the bank's core businesses, reached 2.48 billion euros, a 19% year-on-year increase, outperforming the 8.1% expected growth. By comparison, during the same period, Morgan Chase (JPM.US) saw a 21% growth in similar businesses, while Goldman Sachs Group, Inc. (GS.US) had a growth of 17%. Furthermore, following a period of stagnation, the bank's underwriting and advisory business saw a 27% revenue growth, higher than the expected 24.4%. Deutsche Bank Aktiengesellschaft recently restructured key positions in this department. Compared to its European competitors, BNP Paribas (BNPQY.US) did not meet expectations, while Barclays (BCS.US) had mixed results in their investment banking business. Despite the impact of market volatility and concerns over economic growth caused by US President Trump's tariffs on trade partners earlier in the year, there have been signs of a rebound in merger and acquisition activities. Sewing has referred to 2025 as the "year of reckoning," as Deutsche Bank Aktiengesellschaft must achieve cost and profitability targets this year to meet its commitment to return over 8 billion euros to shareholders between 2022 and 2026. "We have laid a solid foundation for the next phase of our strategic journey," Sewing stated. Deutsche Bank Aktiengesellschaft is also setting financial goals for 2026 and beyond, and may adjust its strategy. Sewing mentioned that this strategic adjustment "has no restrictions," and specific details will be announced in November. Revenue growth in the bank's other two major business divisions was more subdued. Revenue in the retail banking business grew by 4%, close to the expected 3.4%. Revenue in the corporate banking business declined by 1%, while analysts had previously predicted an increase of less than 1%. DWS, the asset management company mainly owned by Deutsche Bank Aktiengesellschaft, reported a significant 34% increase in net profit for the period.