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Deutsche (DB) Reports Preliminary Q2 Profit, Stock Gains 8%


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Deutsche Bank AG DB has gained more than 8% on the NYSE following the release of its preliminary second-quarter 2018 results. The company expects to report income before income taxes of about €700 million ($834.8 million) and net income of nearly €400 million ($477 million) for the quarter.

Deutsche Bank expects the results to considerably exceed the average consensus estimate (as complied by Deutsche Bank) of €321 million ($382.8 million) for income before income taxes and €159 million ($189.6 million) for net income.

Total revenues for the second quarter are expected to be about €6.6 billion ($7.9 billion) compared with consensus estimate of €6.4 billion ($7.6 billion). Of the total revenues, €3.5 billion ($4.2 billion) are expected from Corporate & Investment Bank segment. The segment's sales & trading revenues are likely to decline 15% year over year whereas origination & advisory revenues are expected to increase 2%.

Notably, the segment's revenues will include a gain on an asset sale and debt valuation adjustments of €100 million ($119.3 million). This is indicative of expanding credit spreads of Deutsche Bank during the quarter.

The bank expects to incur noninterest expenses of nearly €5.8 billion ($6.9 billion), below the average consensus estimate of €6 billion ($7.2 billion). Of the total expenses, €0.2 billion ($0.2 billion) is projected as restructuring and severance costs.

Further, Deutsche Bank came up with preliminary capital ratios. Common Equity Tier 1 capital ratio is anticipated to be 13.6%, 3 basis points above the average consensus estimate. Notably, fully loaded leverage ratio is projected to be 3.9% compared to consensus expectation of 3.7%.

The company will be releasing full results for the second quarter on Jul 25.

Currently, Deutsche Bank carries a Zacks Rank #5 (Strong Sell).

You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .

Among other foreign banks, UBS Group AG UBS will release second-quarter results on Jul 24 while Itau Unibanco Holding S.A. ITUB and HSBC Holdings plc HSBC will report on Jul 30.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



This article appears in: Investing , Business , Stocks
Referenced Symbols: UBS , DB , ITUB , HSBC



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