03:57 AM EDT, 10/29/2026 (MT Newswires) -- RBC Capital Markets believes Deutsche Bank (DBK.F) remains "on track" with its strategic plan amid ongoing macroeconomic pressures. "The macro and geopolitical backdrop is certainly different from when DBK presented its plan a year ago. However, DBK is meeting a number of goalposts suggesting it is on the right track. CB revenues have picked up in line with guidance supported by volume growth (e.g. structured finance) and we expect higher rates might have helped in treasury services. Investments (and hedge rollover) have benefitted PB leading to revenue growth and higher levels of net flows. Deposit competition in Germany, though increasing (data shown in the note) has not derailed the progress. Investment banking benefitted from stronger FIC performance but IBCM generally disappointed," according to a Wednesday note. The research firm estimates that nine-month costs are well under the German lender's 21.3 billion-euro guide, but investments, seasonality and potential litigation charges "could close the gap," as RBC expects the full-year 2026 cost-to-income ratio to come in at 63.8%. Meanwhile, analysts flagged that loan loss trends "disappointed," particularly surrounding US commercial real estate exposures, leading them to take a "more conservative" stance on 2026 and 2027. "Higher loan losses mean that on our estimates, DBK's ROTE remains only flat in 2026 vs 2027. However, this has not impacted our estimated capital distribution (other than being linked via payout ratio) and we forecast a YE 2026 CET 1 ratio at 13.8% in line with the target range," the research firm added. Against this backdrop, RBC made minor adjustments to its forecasts, as lower expectations for investment banking and capital markets were counterbalanced by "better" cost discipline. Analysts also ticked up the outperform-rated stock's price target to 40 euros from 36 euros.

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