Deutsche Bank reported second-quarter profits before tax of EUR 2,421 million, beating consensus estimates by 18%. Strong performance in investment banking offset weakness in origination and advisory business. Loan-loss provisions of 36 basis points were decent, leading to an increase in fair value estimate to EUR 19.70 per share.

Deutsche Bank’s focus on investment banking has paid off, with a strong performance in fixed-income and currencies business. However, weak origination and advisory business remains a concern. Loan-loss provision assumptions are above-consensus due to exposure to commercial real estate and uncertainty around tariffs on corporates. No moat rating is maintained.

Read more at Morningstar: Good Performance in Fixed Income