Germany’s largest investment bank, Deutsche Bank, saw a record €47 billion in funds come in via new clients in Q3. Its after-tax profit also hit €1.9 billion.
However, shareholders face a bruised sector. Europe’s bank stocks fell 7% since early September.
Where Did Deutsche Bank’s €47 Billion Come From?
The largest share, a record €31 billion, went to the bank’s asset management arm. Most went into passive funds, which cheaply track a market index.
Those flows feed fees. Management fees at the unit rose 14% on higher average assets, the bank said.
The arm is listed separately as DWS, which also reported record nine-month inflows on Wednesday.
The Private Bank, which serves households and wealthy savers, added a record €17 billion.
“We see encouraging momentum in Germany, where increasing confidence among clients is creating further growth opportunities for us,” the bank’s CEO, Christian Sewing, stated.
Can Europe’s Bank Stocks Recover on Results Like These?
Deutsche Bank shares rose about 3% in Frankfurt on Wednesday morning. The US-listed shares later cooled to a 1.6% gain as of this writing.
Money reserved for bad loans rose 20% from a year earlier to €501 million. The bank cited commercial property sales and a one-off client problem in Asia.
Lending is the next test, told Reuters.
“The capital positions are strong, but the key thing is the lending activity picking up,” Reuters reported, citing Dorian Carrell, head of multi-asset income at Schroders.
Deutsche Bank’s loans grew 5%, or €22 billion, year on year.
European banks grew profits about 18% in the second quarter. Yet Barclays missed forecasts on October 22, and the bank index fell 2.7% that day.
Rising bond yields, with French borrowing costs climbing past Italy’s, also sent global bank stocks lower this month.
Deutsche Bank kept its 2026 revenue goal above €33 billion. Sewing also sees room to beat a 2028 target for return on tangible equity above 13%, a gauge of profit on core capital.
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