Given the rather grim expectations of not-so-long ago, every day among the living is a gift for Deutsche Bank. And it very much remains among the living, as for the third-straight quarter it bested analysts’ gloomy estimates, and for the second of those three actually posted a profit. What’s more, that profit came from a most unexpected place: Deutsche’s miserable investment bank.

Deutsche Bank on Wednesday reported a net profit of 182 million euros ($214 million) for the third quarter…. his surpassed expectations of a 114 million euro loss and marked a sharp improvement from the 77 million euro net loss attributable to shareholders in the previous quarter….

The bank benefited in particular from strong performance in its investment bank, where net revenues were up 43% year-on-year to 2.4 billion euros, driven by 47% growth in the Fixed Income & Currencies (FIC) division.

That kind of survival deserves a celebration, and that means a fröhliche Weihnachten indeed for those i-bankers.

“A company like ours needs to be able to pay for competitive performance,” Chief Financial Officer James Von Moltke said in a Bloomberg Television interview on Wednesday. “It is sensible to be able to protect the franchise by being able to compensate our employees in line with our performance….”

The bank may keep the overall bonus pool little changed from last year’s 1.9 billion euros ($2.2 billion), according to people with knowledge of the matter. Lower headcount compared with a year earlier will allow it to compensate top performers…. The final decision on the bonus pool will also depend on performance in the fourth quarter and any estimated impact on the bank from the worsening pandemic situation, the people said. Deutsche Bank typically decides on bonuses in December and January and pays them in March.

Deutsche Bank swings back to profit in third quarter, beats expectations [CNBC]
Deutsche Bank Plans Higher Bonus for Top Investment Bankers [Bloomberg]

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