DBK.DE

• Overall Group Financial Performance

  • H1 2026 group revenues reached EUR 17.2 billion, on track to hit the full-year 2026 revenue ambition of ~EUR 33 billion. H1 2026 post-tax profit was a record EUR 4.1 billion, with post-tax RoTE of 11.9%, a CET1 capital ratio of 13.9% (in the bank's target operating range), and an improved cost/income ratio of 60.9%.
  • A new EUR 500 million share buyback funded from 2026 net income was announced, marking the first time the bank has executed a buyback from the current year's earnings, signaling confidence in current performance momentum.
  • The bank has delivered 20 consecutive quarters of year-on-year revenue growth as of Q2 2026.

• Global Hausbank Strategy Progress

  • The bank delivered 5% overall revenue growth in H1 2026, maintained strict capital discipline (including the announced sale of the Private Bank India franchise, expected to be SVA positive upon closing in 2027), and progressed its simplified, scalable operating model.
  • Total group assets under management grew 16% year-on-year to EUR 1.92 trillion, with record net inflows of EUR 56 billion in H1 2026 across Private Bank and Asset Management. Group loans grew 4% year-on-year, and deposits grew 7% year-on-year.
  • All four core divisions achieved RoTE of 12% or higher in H1 2026 (adjusted for strategic one-off costs in Private Bank).

• Strategic Long-Term Trend Updates

  • German structural economic reforms (health, pension, infrastructure and defense investment) are taking shape, with fiscal expansion gaining momentum. Deutsche Bank's combined Private Bank, Wealth Management and Asset Management franchises are well positioned to capture growth from private pension expansion.
  • AI adoption is progressing faster than management expected, with opportunities to boost productivity across workflows, enhance client experience, increase market share, and drive both incremental operating efficiencies and future revenue growth.
  • European Savings and Investment Union momentum is building alongside German pension reform, with the bank's asset gathering, corporate and investment banking franchises positioned to capture opportunities from more integrated European capital markets.
  • European policymakers are increasingly focused on creating a more level regulatory playing field, with expected relief from unintended consequences of CRR3 and FRTB that would support European bank competitiveness in lending and capital markets, plus simplified EU macroprudential requirements.

• Operational Highlights

  • Private Bank completed all 100 planned 2026 branch closures, and has hired 116 new Wealth Management coverage staff, on track to hit its target of 250+ new coverage hires.
  • Investment Bank expanded EMEA market share in investment banking and capital markets, and management confirms it gained FIC market share in Q2 2026 based on peer disclosures.

• Full-year 2026 group revenue is on track to comfortably hit the prior target of ~EUR 33 billion, driven by strong first half performance.
• Full-year 2026 net interest income (NII) for core banking book segments and other funding is now expected to slightly exceed the prior guidance of ~EUR 14 billion, with additional benefits from recent rate decisions to become more pronounced in 2027 and 2028 due to the bank's structural hedging approach.
• Full-year 2026 expense guidance remains unchanged and aligned with prior Investor Day commitments, as operating efficiencies offset incremental planned investments.
• On an underlying basis, 2026 provision for credit losses is still expected to decrease slightly year-on-year, with a normalized average annual provision rate of ~30bps targeted through 2028.
• Management maintains confidence in achieving the 2028 target of RoTE greater than 13%, and identifies upside potential from the positive development of the four core long-term trends outlined. Increasing AI and organizational simplification productivity benefits are expected to exceed earlier 2028 assumptions.
• The bank will maintain its 60% payout ratio for shareholder distributions, with the new EUR 500 million share buyback commencing after completion of the ongoing EUR 1 billion buyback.

Private Bank: Q2 2026 revenues rose 8% year-on-year, with 10% net interest income growth and 8% net commission and fee income growth. Reported RoTE was 11% (13% excluding India divestiture impact), cost/income ratio 70% (66% excluding divestiture impact). Client assets grew 7% year-on-year to ~EUR 850 billion in H1 2026, deposits grew 4% year-on-year. Excluding non-strategic reductions and the India divestiture, loans grew 2% year-on-year. It contributed ~23% of total Q2 revenues.

Asset Management: Q2 2026 revenues increased 4% year-on-year, with management fees up 13% year-on-year driven by higher average AUM. It recorded record net client inflows of EUR 25 billion in Q2, bringing H1 2026 inflows to EUR 34 billion. Total AUM rose 18% year-on-year to ~EUR 1.2 trillion. Noninterest expenses increased 7% year-on-year aligned with growth initiatives. It contributed ~8% of total Q2 revenues.

Corporate Bank: Q2 2026 revenues were EUR 1.9 billion, up 1% year-on-year and 5% sequentially. It delivered RoTE of 16.4% with a 62% cost/income ratio. Average loans and deposits both grew year-on-year, driven by growth in sight deposits for cash management and trade finance loans. It contributed ~22% of total Q2 revenues.

Investment Bank: Q2 2026 revenues rose 19% year-on-year, led by a record quarter for FIC (Rates and credit trading) and 36% year-on-year growth in IBCM revenues. IBCM grew 17% sequentially, with strength in equity origination and advisory aligned with the bank's strategic rebalancing. Noninterest expenses rose 6% year-on-year due to targeted hiring and performance compensation. It contributed ~29% of total Q2 revenues.

Non-division Corporate & Other (C&O): C&O contributed positively to Q2 2026 revenues due to valuation and timing differences, with full-year 2026 guidance for C&O remaining unchanged. Non-investment banking segments combined contribute more than 60% of total group revenue.

• Geopolitical uncertainty and broader macroeconomic volatility in the operating environment are acknowledged as potential risks, though management expects the bank's loan portfolio to remain resilient to these challenges.
• The speed and final form of regulatory changes and structural reforms in Germany and Europe are uncertain, even though the overall direction of change is positive for the bank.
• The bank completed targeted risk reduction actions by exiting certain non-performing commercial real estate (CRE) exposures in Q2 2026, which resulted in a EUR 460 million provision for credit losses; these exits are expected to be capital accretive over time and improve the overall portfolio risk profile.
• Foreign exchange headwinds continued to impact the Corporate Bank's Institutional Client Services segment in Q2 2026, though management notes these headwinds are diminishing.

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