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Deutsche Bank shares surge on revised revenue estimates and share buyback plans

EditorVenkatesh Jartarkar
Published 25-10-2023, 10:14 pm
© Reuters.

Shares of Deutsche Bank (ETR:DBKGn), Germany's leading lender, saw a significant uptick in early Frankfurt trading, sparked by the bank's optimistic outlook and plans for additional share buybacks. Despite an anticipated 8% decrease in Q3 earnings due to subdued deal activity impacting investment banking revenues, the bank still celebrated its 13th consecutive profitable quarter.

On Wednesday, Deutsche Bank announced a revision of its full-year revenue estimates, projecting higher numbers than previously expected. This positive adjustment was largely fuelled by growth in the bank's retail and corporate divisions, which benefited from increasing interest rates - a trend mirrored globally in the banking sector.

In addition to revising its revenue forecasts, Deutsche Bank pledged more share buybacks for the upcoming year. The bank also indicated an increased capital return to shareholders, exceeding previous expectations. These announcements ignited a 5.5% increase in Deutsche Bank's shares during early trading in Frankfurt.

Meanwhile, other major European banks are also outperforming market predictions. Santander (BME:SAN) reported a 20% YoY rise in Q3 net profit to $3 billion, surpassing expectations due to a boost in European lending income. Lloyds (LON:LLOY) met Q3 profit forecasts with a pre-tax profit of $2.3 billion, despite a 5% rise in operating costs and shrinking lending margins.

In light of these results, investors and market watchers will be closely monitoring these banks' performances as they navigate global economic trends and continue to adjust their strategies accordingly.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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