Q3 strength and what executives said
Deutsche Bank turned in its third consecutive record quarterly profit, and that momentum has management weighing an upgrade to objectives alongside January's full-year report. On the call, Chief Executive Officer Christian Sewing said he is "more than confident" the bank will hit its current goal of a return on tangible equity above 13% in 2028, adding analysts should not assume that is "the end game, not at all."
"We are not yet there where we should be," Sewing said, noting that some banks are aiming higher. He also nodded to a revenue bump, saying, "I love that we just gave you a little bit of an upside on the revenue side," as guidance shifts to "more than" €33 billion this year.
Revenue, costs and provisions
The lender said this year's revenue could exceed its prior guide of around €33 billion, or $36.8 billion. Chief Financial Officer Raja Akram said the bank plans to restrain expenses even as the top line grows, adding, "We will get this cost base down to beat our original aspirations for 2028." The target remains a cost to income ratio below 60% by 2028.
Loan-loss provisions rose in the quarter due to exposure to US commercial real estate, but Akram said those charges should normalize. "We are very confident that we will get to the 30 basis points in 2028 on the back of the actions that we're doing," he said, adding, "And the 2027 headline reported number will be lower than the 2026 number."
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Targets, peer gap and why it matters
Management said the latest results support its view that it can outperform its mid term profitability objective. Sewing has prioritized stronger profitability to close a long running valuation gap with many European competitors.
The bottom line: firmer revenue guidance, a stricter cost plan and clearer credit normalization aims point to a potentially higher bar in January. For your portfolio, that means watching whether the bank formally raises targets - and whether execution keeps pace with bolder profitability markers.
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