Metzler Expects Deutsche Bank to Book Higher Loan Loss Provisions in Q3; Hold Retained

09:49 AM EDT, 10/08/2026 (MT Newswires) -- Metzler Capital Markets retained its hold rating on Deutsche Bank (DBK.F), with an unchanged price target of 31 euros, expecting higher loan loss provisions to weigh on the German lender's third-quarter results. The banking group's net revenue for the quarter is forecast to reach 8.23 billion euros, up 2% on an annual basis, the research firm wrote in a Thursday note. Loan loss provisioning, meanwhile, is expected to jump 18% to 490 million euros, impacted by certain measures aimed at de-risking its commercial real estate portfolio. "In brief, we consider Deutsche Bank to be well on track for the 2026 net revenue target of EUR 33 bn (MR'e: EUR 33.4 bn; +4% y-o-y). However, regarding EBT in Q3/26e, we expect the potential benefit of rising revenues (Q3/26e: +2% y-o-y) to be offset by higher loan loss provisioning and increased cost spending," analysts said. "Our forecast for group EBT '26e is marginally down due to raised loan loss provisioning assumptions. Our estimates for the years following are marginally up due to a higher net interest income, which overcompensates for a higher LLP forecast." Deutsche Bank is scheduled to release its latest quarterly results on Oct. 28.