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FinanceDeutsche Bank Q2 profit near 19-year high, plans €500M buyback; Frankfurt HQ searched
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Deutsche Bank surprised markets with a near-19-year record profit in Q2 2026, driven by a 60% surge in its investment banking division. Pre-tax profit reached 2.68 billion euros, just shy of the 2007 record, while net profit rose 10% year-on-year to 1.64 billion euros. The bank announced plans to invest 500 million euros in share buybacks in the second half of the year and reaffirmed its 2028 return on equity target of over 13%, currently at 11%. CEO Christian Sewing highlighted artificial intelligence as a new opportunity for growth and cost savings. However, the positive results were overshadowed by news that prosecutors searched Deutsche Bank's Frankfurt headquarters last week as part of an investigation into allegedly illegal cum-cum stock transactions from the Postbank era. The probe targets board member Marcus Chromik, who held leadership roles at Postbank and joined Deutsche Bank's board in 2025.
Source report
Searching for evidence of questionable stock transactions from earlier Postbank times, investigators have searched the headquarters of Deutsche Bank in Frankfurt. "This involves three-digit million-euro cases," said WELT business editor Holger Zschäpitz.
Deutsche Bank has surprised markets with a second-quarter profit approaching a 19-year record, driven primarily by its investment banking division. The group has also announced plans for billions in share buybacks and reaffirmed its 2028 return targets.
Strong Quarterly Performance
Deutsche Bank achieved a near-record profit in the second quarter, with a pre-tax result of €2.68 billion — only marginally below the same period in the record year 2007. Net profit stood at €1.64 billion, representing a 10% increase year-on-year, though slightly below 2007 levels.
Share Buyback Plans
In the second half of the year, the bank plans to invest an additional €500 million in buying back its own shares.
CEO Comments on Future Targets
"Together with our previous record results this year, these developments strengthen our confidence that we can exceed our targets for 2028," said CEO Christian Sewing.
Sewing, who took over leadership of the bank in April 2018 following several crisis years, has set a goal of increasing return on equity to more than 13%. In the second quarter, return on equity stood at 11%. Return on equity measures how efficiently banks use capital to generate profits.
Investment Bank Drives Growth
The investment bank — which generates revenue through financing, corporate advisory, IPOs, and securities issues — saw particularly strong growth in the April-to-June 2026 period. The division's pre-tax profit rose by nearly 60% compared to the same period last year, reaching €1.3 billion.
AI Opportunities
Sewing emphasized that artificial intelligence opens up "new opportunities to create added value for our customers and achieve additional savings."
Investigation and Searches
Last week, investigators searched Deutsche Bank's headquarters in Frankfurt for evidence of questionable stock transactions from earlier Postbank times.
According to WELT information, the investigation is directed against, among others, Marcus Chromik, who held various leadership positions at Deutsche Postbank. Investigators accuse him of involvement in allegedly illegal cum-cum transactions. Chromik has been on the board of Deutsche Bank since 2025.
dpa/nw
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Deutsche Bank Posts Near-Record Profit, Plans Share Buybacks Amid Postbank Probe