Why Is Deutsche Bank (DB) Up 6.6% Since Last Earnings Report?

It has been about a month since the last earnings report for Deutsche Bank (DB). Shares have added about 6.6% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Deutsche Bank due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for Deutsche Bank Aktiengesellschaft before we dive into how investors and analysts have reacted as of late.

Deutsche Bank Q1 Earnings Rise Y/Y on Higher Revenues & Lower Expenses

Deutsche Bank reported first-quarter 2026 earnings attributable to its shareholders of €1.91 billion ($3.26 billion), up 7.7% year over year.

This Germany-based lender reported a record profit before tax of €3 billion ($5.2 billion), up 7.2% from the year-ago quarter.

Increased revenues and lower expenses aided results. However, higher provisions for credit losses were a headwind.

Revenues & Expenses

The bank generated net revenues of €8.7 billion ($14.8 billion), up 1.7% year over year.

Non-interest expenses of €5.1 billion ($8.7 billion) decreased 2% from the prior-year quarter.

Provision for credit losses was €519 million ($885.4 million), up 10.2% from the prior-year quarter.

Segmental Performance

Corporate Bank: Net revenues from the segment were €1.8 billion ($3.1 billion), down 2.7% year over year. The results were hurt by a decrease in Institutional Client Services revenues.

Investment Bank: This segment’s net revenues totaled €3.4 billion ($5.7 billion), which increased marginally year over year. The upside was primarily driven by the improvement in Investment Banking & Capital Markets revenues.

Private Bank: Net revenues of €2.6 billion ($4.4 billion) rose 5.2% year over year.

Asset Management: Net revenues of €802 million ($1,368.2 million) rose 9.9% year over year. An increase in management fees and performance and transaction fees led to the rise.

Corporate & Other: The segment reported net revenues of €114 million ($194.5 million), down 10.2% from the prior-year quarter.

Capital Position

DB’s Common Equity Tier 1 capital ratio was 13.8% as of March 31, 2026, unchanged from the year-ago quarter.

The leverage ratio on a fully loaded basis was 4.4%, down from the year-ago quarter's 4.6%.

Outlook

2026

Deutsche Bank expects full-year revenues of around €33 billion. This is supported by banking book net interest income increasing to around €14 billion and continued growth in net commission and fee income.

Management expects noninterest expenses to increase to slightly above €21 billion in 2026. This includes approximately €900 million of incremental investments to support growth initiatives and efficiency measures.

Provision for credit losses is expected to trend moderately downward in 2026 compared with 2025, moving closer to an average run rate of around 30 basis points through 2028.

Post-tax Return on tangible equity is expected to improve further as part of the next phase of execution, with annual operating performance improvements.

Management expects to increase the payout ratio to 60% beginning in 2026. Dividend per share is expected to grow modestly on a continuous basis, complemented by share buybacks.

The CET1 capital ratio is expected to remain within the 13.5%–14.0% operating range. If the ratio sustainably exceeds this range, management may deploy additional capital through distributions, subject to regulatory approval.

Medium-Term Outlook (2028)

Deutsche Bank expects a post-tax Return on Tangible Equity of greater than 13% by 2028.

Management expects the cost/income ratio to decline to below 60% by 2028.

The bank targets a Group revenue CAGR of greater than 5% between 2025 and 2028.

The CET1 capital ratio operating range is expected to remain at 13.5%–14.0%.

The payout ratio is targeted at 60%, subject to capital position and regulatory approval.

How Have Estimates Been Moving Since Then?

Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.

VGM Scores

Currently, Deutsche Bank has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for value investors.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Deutsche Bank has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Deutsche Bank is part of the Zacks Banks - Foreign industry. Over the past month, Barclays (BCS), a stock from the same industry, has gained 4%. The company reported its results for the quarter ended March 2026 more than a month ago.

Barclays reported revenues of $11 billion in the last reported quarter, representing a year-over-year change of +13.3%. EPS of $0.76 for the same period compares with $0.65 a year ago.

Barclays is expected to post earnings of $0.78 per share for the current quarter, representing a year-over-year change of +25.8%. Over the last 30 days, the Zacks Consensus Estimate has changed +6.9%.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Barclays. Also, the stock has a VGM Score of C.

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