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Deutsche Bank Confirms FY20, FY22 Targets; Stock Up

German banking major Deutsche Bank AG (DB) Wednesday confirmed its primary strategic and financial targets for fiscal years 2020 and 2022.

The outlook reflects strong performance in the bank's core business which has driven significant improvement in profitability in 2020 to date.

For fiscal 2020, Deutsche Bank said it remains on track to deliver objectives, and expects to meet adjusted cost target of 19.5 billion euros.

Provision for credit losses is expected to be close to the midpoint of the target range of between 35 and 45 basis points of loans.

Further, for fiscal 2022, Deutsche Bank's revenue plan is broadly unchanged, as better-than-expected performance in its core businesses and other measures offset additional interest rate headwinds.

The company expects to deliver a post-tax return on tangible equity or RoTE of 8% in 2022 and to returning 5 billion euros of capital to shareholders from 2022.

The company lowered adjusted costs target to 16.7 billion euros from 17.0 billion euros expected earlier after identifying additional cost-saving opportunities.

Christian Sewing, Chief Executive Officer of Deutsche Bank, said, "Since 2018 we have consistently delivered on or ahead of our targets. That remains our ambition. We will maintain our discipline on cost and risk management as we now enter the third phase of our transformation: sustainable revenue growth and profitability. . . We believe we're on the right track to achieve our return on tangible equity target in 2022."

In Germany, Deutsche Bank shares were trading at 9.59 euros, up 1.47 percent.

In pre-market activity on the NYSE, the stock is gaining 1.8 percent to trade at $11.64.

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