Deutsche Bank celebrates record high: Why investors should jump on board now!

Deutsche Bank celebrates record high: Why investors should jump on board now!

Deutsche Bank reached a new annual high today with a share price of EUR 25.54. The share has gained over 50% in value so far this year. This positive momentum could continue as the board presents the next quarterly results on July 24th, which are highly anticipated, especially given the optimistic forecasts for the third quarter.

Loud The shareholder Consensus-based revenue of 7.73 billion euros and a net profit of 1.22 billion euros are expected for the coming quarterly figures. These figures are above those of the previous year's quarter, where revenues of 7.6 billion euros were reported. In 2024, the bank recorded a loss of 143 million euros due to write-downs for Postbank.

Forecasts and expectations

Deutsche Bank's forecasts for the current year assume revenues of 31.5 billion euros, while the institute itself even expects 32 billion euros. The profit forecast was raised to 5.6 billion euros, compared to 3.4 billion euros last year. These developments could be supported by the fact that net interest income is expected to rise despite falling key interest rates, with €13.4 billion for 2023 and €14.0 billion for 2028.

Attention will also be paid to the upcoming quarterly figures to check whether the annual targets can be achieved. Investors may be able to set a risk stop at a valuation of 20.50 euros to protect potential profits.

First quarter results

Deutsche Bank are summarized. The institute's pre-tax profit amounted to 2.8 billion euros, an increase of 39% compared to the same quarter last year. The after-tax profit also rose by 39% to 2.0 billion euros. This is also reflected in an improved after-tax return on average tangible equity, which is now at 11.9%, thus meeting the target of over 10% for 2025.

The company was able to increase its income by 10% to 8.5 billion euros. The net inflows of funds in private customer banking and asset management were particularly notable at 26 billion euros. The cost-income ratio improved to 61.2%, with the target for 2025 being below 65%.

The results of the individual business areas also reflect solid growth. The corporate bank achieved a pre-tax profit of 632 million euros (+3%), while the investment bank recorded notable increases with 1.5 billion euros (+22%) and the private customer bank with 490 million euros (+43%). Asset management closed with 204 million euros (+67%).

In addition, a cash dividend of EUR 0.68 per share was proposed for the 2024 financial year, an increase of 50% compared to the previous year, which should further increase confidence in future earnings prospects.