Deutsche Bank reported a 10% increase in second-quarter net profit attributable to shareholders, to €1.64 billion from €1.49 billion a year earlier. The result exceeded the €1.38 billion expected by analysts and sent the shares 4% higher at the opening, extending the lender’s recovery under Chief Executive Christian Sewing.
The global investment bank supplied the decisive growth. Revenue in the division climbed 19%, far above the 7.6% increase analysts had forecast, and remained Deutsche Bank’s largest source of income. The performance tied the German lender to the quarter’s wider boom in trading, capital raising, initial public offerings and corporate transactions.
Fixed-income and currency trading revenue advanced 16%, compared with an expected 5.1%, and outpaced the average gain at the five largest U.S. banks. Origination and advisory revenue rose 36%, twice the forecast increase, after Deutsche Bank worked on transactions including SpaceX’s initial offering and Alphabet’s capital raising.
Growth elsewhere was steadier. Retail banking revenue increased 8%, slightly above expectations, while the corporate bank posted a 1% rise where analysts had anticipated a decline. Those divisions provided a more stable base, but did not match the investment bank’s operating leverage during the quarter.
Higher revenue did not remove the pressure from costs. Expenses rose 8%, including a charge of almost €100 million connected with Deutsche Bank’s exit from retail banking in India. The figures therefore show that the earnings beat depended on unusually strong fee and trading income absorbing a cost base that was still expanding.
Management used the quarter to reinforce its standalone strategy. Sewing said the performance created potential upside to the bank’s 2028 targets, while finance chief Raja Akram said Deutsche Bank did not need acquisitions to reach its objectives. That position separates it from UniCredit’s pursuit of Commerzbank and avoids adding integration risk in the short term.
The results arrived alongside continuing legal scrutiny. German prosecutors had searched the Frankfurt headquarters over alleged fraudulent tax transactions involving Postbank between 2008 and 2010, the third known prosecutorial search of the bank during 2026. Management said it remained focused on execution, but repeated investigations remain a governance and reputational risk.
Deutsche Bank’s next test is whether investment-banking momentum can persist without the large equities-trading franchise that helped several U.S. peers post much faster profit growth. The quarter improved the earnings trajectory, yet the durability of the 2028 upside will depend on keeping costs controlled, sustaining advisory pipelines and resolving legal exposures without disrupting the core franchise.
