Deutsche Bank, the German lender, announced a decrease in its second-quarter earnings due to increased costs and provisions for loan losses. Despite this, the bank’s total revenue increased by 11% to EUR7.41 billion.
Impact of Non-interest Expenses
The bank’s second-quarter earnings were heavily influenced by non-interest expenses, which reached EUR5.6 billion—a 15% increase compared to the previous year. This rise was primarily driven by EUR655 million in non-operating expenses related to litigation and restructuring.
Rise in Credit Loss Provisions
Deutsche Bank experienced an uptick in credit loss provisions, reflecting the challenges presented by the current economic environment.
Share Buybacks to Resume
In a separate announcement, Deutsche Bank unveiled its plan to resume buying back shares in August. The bank intends to repurchase shares worth up to EUR450 million over the remainder of the year—a figure approximately 50% higher than in 2022. This decision aligns with the bank’s increase in its 2022 dividend to 30 European cents.
Focus on Returning Capital to Shareholders
Deutsche Bank has set a goal of returning more than EUR1 billion to shareholders this year through a combination of dividends and share repurchases. This amount represents a significant increase from the approximately EUR700 million returned in 2022.
These developments indicate that Deutsche Bank is committed to enhancing shareholder value while navigating the challenges of the current economic landscape.
