BofA Sees 'Softer' Q2 for Deutsche Bank; Price Objective Up

BofA Global Research expects Deutsche Bank (DBK.F) to report a "softer" second quarter, weighed down by a year-over-year increase in costs due to strategic investments, restructuring charges at its private bank division, and continued hiring. Net profit for the quarter is projected to decline 2% on an annual basis, while revenue is forecast to grow 4%, according to an earnings preview note published Tuesday. "But we expect management to focus investors on the improving outlook rather than the quarter itself. Key messages should include a higher NII trajectory, resilient Investment Bank momentum, recovering Corporate Bank trends and continued delivery on structural cost savings. Capital generation remains strong, supporting healthy distribution," analysts said. The research firm also sees the possibility of Deutsche Bank increasing its 2026 net interest income target to more than 14.5 billion euros from 14 billion euros on the back of improving trends at its investment bank segment. The lender is also anticipated to announce a share buyback program worth 500 million euros alongside its latest quarterly results on July 29. BofA bumped up the price objective to 39 euros from.