Deutsche Bank reported a net profit of 1.46 billion euros in the third quarter of 2024, marking a 42% increase year-on-year and exceeding analyst expectations of 1.4 billion euros.

This financial rebound was significantly aided by a resolution in the legal dispute concerning the takeover of Postbank, which allowed the bank to release 440 million euros in provisions from the previous quarter.

The profit increase was also attributed to a rise in revenues, which grew by 5% year-on-year to 7.5 billion euros, driven by strong performance in investment banking and asset management.

The global investment banking division played a crucial role in this profit rebound, particularly in advisory services and securities issuance.

By business segment, investment division revenues rose by 12% to 7.323 billion euros, while asset management revenues increased by 8% to 1.803 billion euros.

Conversely, corporate banking revenues fell by 3% to 5.642 billion euros, and retail banking revenues decreased by 2% to 7.177 billion euros.

Despite these challenges, the bank's management remains optimistic about achieving its 2025 targets, including a return on tangible equity exceeding 10%.

The CET1 capital ratio improved to 13.8%, up from 13.5% in the previous quarter, reflecting the bank's enhanced solvency.

Customer deposits also saw an increase of 9 billion euros, reaching a total of 650 billion euros in the third quarter.

To streamline operations, Deutsche Bank is implementing a cost-saving strategy that includes cutting up to 3,500 jobs by 2025.

Despite previous setbacks related to the Postbank acquisition, Deutsche Bank remains on track to meet its annual revenue goal of approximately 30 billion euros for 2024.

Additionally, the bank has distanced itself from rumors of a merger with Commerzbank, which is currently exploring acquisition offers from Italy's Unicredit.