3Q16 estimates

Deutsche Bank (DB) is scheduled to report its 3Q16 earnings on October 27 after the markets close. Wall Street (SPY) analysts expect Deutsche Bank to report 3Q16 EPS (earnings per share) of 0.34 euros, or $0.36, but a net loss of 397 million euros, or $438 million.

In 3Q15, the bank reported losses of 952 million euros, or nearly $1.1 billion. Analysts also expect the bank to post revenues of 7.2 billion euros (about $7.9 billion) and pre-tax losses of 727 million euros (about $804 million).

What Analysts Expect from Deutsche Bank’s 3Q16 Earnings

The year ahead

In 2016, analysts expect Deutsche Bank to report earnings of 0.29 euros per share (about $0.32) and net income of 920 million euros (about $1 billion). Revenues for 2016 are expected to be 29.6 billion euros (about $32.5 billion). European banks (EUFN) like UBS (UBS), Credit Suisse (CS), Royal Bank of Scotland (RBS), and Barclays (BCS) have been struggling to maintain their profitability amid negative interest rates and strict regulations.

This year is expected to be the peak of restructuring for Deutsche Bank. The company plans to incur restructuring and severance expenses of 1 billion euros (about $1.1 billion) in 2016. Litigation charges will continue to put pressure earnings in the remaining quarters of 2016.

These cost pressures are expected to be offset by savings. On an adjusted basis, costs are expected to be flat over the year. RWAs (risk-weighted assets) from non-core operating units are expected to drop, but operational risk RWAs will likely offset them. Overall, RWAs are expected to be flat in 2016.

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