Deutsche Bank Shares Fall After CFO Signals Weaker Q3 Investment Bank Revenue

Deutsche Bank (DBKGn) shares declined after its chief financial officer signaled that third-quarter investment banking revenue may be flat to slightly down from a strong period last year. The cautious forecast reflects a mixed trading environment in the final weeks of the quarter.

Cautious Outlook Hits Shares

Speaking at a Bank of America investor conference, Deutsche Bank CFO Raja Akram provided a guarded outlook, noting that the final performance will depend on the last few days of September. The bank's shares fell approximately 1% in Frankfurt trading following his comments.

"All in all, depending on how the last six days go, we could come out overall investment bank probably flat to maybe slightly down," Akram stated. He specified that the bank is comparing its performance against a strong third quarter in the previous year.

Trading and Credit in Focus

Akram detailed a varied performance within the bank's key Fixed Income and Currencies (FIC) division. He described a strong July followed by a seasonally slow August and a "little bit of a mixed bag" in September.

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Despite the uneven activity, the CFO noted that most products were performing well, with the exception of credit trading. Akram also indicated that third-quarter credit provisions are expected to land between the levels seen in the first and second quarters, partly due to an "idiosyncratic charge" from a corporate bank exposure that has impacted other lenders.

Costs and Risk Management

On a more positive note, Akram confirmed that costs for 2026 remain under control, with investments in the private bank potentially yielding greater savings than previously forecast.

He also addressed concerns about commercial real estate, stating that the bank's high-risk exposure has been reduced by 40% to 50% since the beginning of the current cycle. "We feel cautiously optimistic that we have at least most of the issues behind us," Akram said regarding the sector.