Deutsche Bank reports record profit as it sees German recovery

Deutsche Bank announced a record profit for the third quarter in a row, signaling growing confidence in the German market. The bank's net profit for the three months ending September 30th reached €1.85 billion, a 2% increase from the same period last year. Overall revenue rose 4% to €8.34 billion, primarily driven by growth in its private banking division.

CEO Christian Sewing expressed satisfaction, stating that the bank has achieved three consecutive record quarterly profits in 2026. Sewing highlighted the encouraging momentum in Germany, attributing it to increasing client confidence, which is generating further growth opportunities for the bank.

The corporate banking division, which lends to businesses, reported a 9% revenue increase to €1.98 billion, with profit rising 11% to €743 million. Sewing's comments suggest that Europe's largest economy may be recovering from a prolonged slump. Germany has experienced virtually no growth since a surge in Covid pandemic demand at the end of 2022, which was tempered by fierce Chinese competition in key export markets, US tariffs, and subdued demand in Europe.

However, recent data releases have provided brighter-than-expected results, boosting hopes that the worst may be over for now. Business sentiment has improved for the sixth consecutive month, according to the Ifo survey, and the government recently raised its full-year growth forecast to 1.3% from April's forecast of 0.5%.