...LONDON (S&P Global Ratings) Oct. 24, 2018--S&P Global Ratings said today that its ratings on Deutsche Bank AG (###+/Stable/A-2) are unaffected following the bank's announcement of its third-quarter 2018 earnings. As we expected, the results reflect the early stages of the bank's business model transition under Christian Sewing, appointed as CEO in April. The 506 million pretax profit for the quarter exceeded the market consensus as cost control and benign credit losses mitigated weaker revenues, particularly in segments of the Corporate and Investment Bank. Deutsche Bank reiterated its confidence in meeting its relatively modest 2019 targets of a 4% post-tax return on tangible equity (ROTE) and 22 billion underlying costs. We see the achievement of these targets--while retaining the solid support of clients--as an important barometer of the bank's strategic execution. We view the third-quarter revenue dip as evidence of the challenges inherent in repositioning the bank, while also regaining...
