Bulletin: Deutsche Bank Second Quarter Results Show Early Signs Of Progress; Ratings Unaffected

LONDON (S&P Global Ratings) July 25, 2018--S&P Global Ratings said today that its ratings on Deutsche Bank AG are unaffected following the bank's announcement of its second-quarter 2018 results. The bank's results were slightly above market consensus. However, as we expected, they reflect Deutsche Bank's ongoing business model transition in an operating environment that remains benign in terms of asset quality but unsupportive in terms of interest rates and market activity. Management's long-term target is for a post-tax return on tangible equity (ROTE) of about 10% in a normalized operating environment. We anticipate that this could lead to improved loss absorption capacity and greater stability. However, we look for management to deliver its nearer term 2019 objectives--such as the 4%

...LONDON (S&P Global Ratings) July 25, 2018--S&P Global Ratings said today that its ratings on Deutsche Bank AG are unaffected following the bank's announcement of its second-quarter 2018 results. The bank's results were slightly above market consensus. However, as we expected, they reflect Deutsche Bank's ongoing business model transition in an operating environment that remains benign in terms of asset quality but unsupportive in terms of interest rates and market activity. Management's long-term target is for a post-tax return on tangible equity (ROTE) of about 10% in a normalized operating environment. We anticipate that this could lead to improved loss absorption capacity and greater stability. However, we look for management to deliver its nearer term 2019 objectives--such as the 4% ROTE target and the related 22 billion cost target--and we continue to monitor whether the bank retains the solid support of its clients. Importantly, amid improving but still rather depressed profitability,...

Bulletin