RBC: Credit Provisions Among Key Topics at Deutsche Bank's Q3 Results

MT Newswires · 3d ago
05:33 AM EDT, 10/06/2026 (MT Newswires) -- RBC Capital Markets expects credit provisions to be among Deutsche Bank's (DBK.F) key focus areas when it releases its third-quarter results on Oct. 28, according to a Monday note. "While the underlying quality of the loan book appears to have remained sound in Q3, DBK guided to Q3 loan losses in between Q1 2026 (EUR519m) and Q2 (EUR460m) due to continued CRE portfolio derisking and an idiosyncratic charge related to a single name in the Corporate Bank. We forecast 2026 loan losses at EUR2bn (assuming Q4 step up)," analysts wrote. "Exposures to US CRE, data centers (EUR7.3bn financing, as per annual report in March 2026), private credit (EUR25.9bn loans, annual report), software (EUR3.2bn, annual report) are likely to be in the spotlight. We increased our 2027 loan loss estimate to EUR1.7bn (33bp) and kept 2028 at 30bp." Taking this into account, RBC lowered its 2026 and 2027 EPS estimates by 2%, while that for 2028 was trimmed by 1%, among other forecast revisions. The research firm also noted the possibility of Deutsche Bank updating its financial targets for 2028 if the group meets its 2026 objectives, including reaching 33 billion euros in revenue. The outperform-rated German stock has an unchanged price target of 36 euros.