Good Q2 figures, profit comfortably ahead of consensus

• Net revenues rose by 7% to €6.7bn for Q2 22 driven only by higher interest income • Provisions for credit losses were €233m for Q2 22 compared to releases/income of €75m for Q2 21 • Total expenses decreased by 3% to €4.9bn for Q2 22 • Profit attributable to shareholders increased by 51% to €1.05bn for Q2 22

Good Q1 figures in line with consensus

• Net revenues rose by 1% to €7.3bn for Q1 22 • Provision for credit losses rose from €69m for Q1 21 to €292m for Q1 22 • Pre-tax profit rose by 4% to €1.66bn for Q1 22 • Profit attributable to shareholders increased by 17% to €1.06bn for Q1 22 compared to Q1 21 by a lower tax ratio

Deutsche targets RoTE above 10% in 2025

• Post-tax RoTE target of greater than 10% in 2025 • Capital distributions to shareholders of around €8bn in respect of the FY2021-FY2025 targeted • Payout ratio of 50% of net income attributable to shareholders in 2025 and thereafter targeted

Strongly improved FY2021 net profit still at low level, weak Q4 21

• Pre-tax profit declined by 53% to €82m for Q4 21 compared to Q4 20 • Profit attributable to shareholders increased from €113m for FY2020 to €1.94bn for FY2021 • Share repurchase programme of €300m announced to be completed in H1 22 • Dividend per share proposal of €0.20 for FY2021 compared to €0.00 for FY2020

Small net profit above expectations, low risk provisions but additional transformation charges

• Net revenues rose by 2% to €6.0bn for Q3 21 compared to Q3 20. • Risk provisions declined by 57% to €117m for Q3 21. • Total expenses increased by 4% to €5.4bn for Q3 21 compared to Q3 20. • Profit attributable to shareholders increased by 7% to €194m for Q3 21 compared to Q3 20.

Good net profit in Q2 due to lower risk provisions and costs

• Net revenues declined by 1% to €6.2bn for Q2 21 compared to Q2 20. • Risk provisions declined from €761m for Q2 20 to €75m for Q2 21. • Total expenses decreased by 7% to €5.0bn for Q2 21. • Profit attributable to shareholders was €692m for Q2 21 compared to a loss of €77m for Q2 20.

Strong net profit in Q1 driven by the Investment Bank business

• Net revenues rose by 14% to €7.2bn for Q1 21, driven by the Investment Bank. • Risk provisions declined from €506m for Q1 20 to €69m for Q1 21. • Pre-tax profit of the Investment Bank rose to €1.5bn for Q1 21 compared to €1.6bn for the total group in Q1 21. • Profit attributable to shareholders was €908m for Q1 21 compared to a loss of €43m for Q1 20.

Slight profit for 2020 due to investment banking contribution push

• Revenues were up by 4% to €24bn for FY2020 • Slight profit for 2020 above consensus expectations • Management released no dividend proposal for FY2020 • However, a dividend payment for FY2021 seems possible

Small net profit above expectations despite windfall profits and low risk provisions

• Net revenues rose by 13% to €5.9bn for Q3 20 compared to Q3 19 due to higher Investment Bank revenues. • Risk provisions decreased by 64% to €273m (25bp) for Q3 20 compared to Q2 20 (61bp). • Deutsche Bank reaffirmed its guidance for the FY2020 provision for credit losses of 35-45bp of loans. • Profit attributable to shareholders was €182m for Q3 20 compared to a loss of €942m for Q3 19.

Deutsche Börse - Seeking secular growth augmented with M&A

Deutsche Börse (DB1) is a leading European capital markets infrastructure provider with activities across pre-trading, trading and clearing, and post-trade segments. Its diversity provides resilience to fluctuations in market activity and encompasses a range of faster growing areas that can fuel the secular growth element of its strategy. M&A is also seen as a potential source of additional capability and growth.

Net loss attributable to shareholders by higher loan loss provisions

• Net revenues rose slightly by 1% to €6.3bn due to higher Investment Bank revenues. • Risk provisions rose from €161m for Q2 19 to €761m or 61bp for Q2 20. • However, Deutsche Bank reaffirmed its guidance for the FY2020 provision for credit losses of 35-45bp of loans. • Group net income attributable to shareholders was a loss of €77m.

Stable revenues but net loss attributable to shareholders

• Revenues were flat which is not bad after three years of decreasing revenues. • Risk provisions rose from €140m for Q1 19 to €506m for Q1 20. • Investment Bank could increase its pre-tax profit by 149% to €622m due to the COVID-19 market turmoil. • Group net income attributable to shareholders was a loss of €43m.

€5.7bn loss for 2019, somewhat higher than expected

• Revenues were down by 8% to €23.2bn for FY2019 • Net result attributable to shares was a loss of €5.7bn for FY2019 • Management released no dividend proposal for FY2019 • Transformation-related effects should burden 2020 with €1.4bn

Deutsche Börse - On track to meet strategic targets

Deutsche Börse (DB1) is a leading European capital markets infrastructure provider across pre-trading, trading and clearing, and post-trade segments. It is following a road map designed to secure faster growth including both organic and M&A elements. At the Q3 stage, the group reported that it is making progress in line with its objectives. DB1 is keen to use its available cash and debt capacity (up to c €2bn) for acquisitions that meet its criteria; these are set to be both lower risk and less

€942m net loss for Q3 19, revenues down by 15%

• Net loss attributable to shares was €942m for Q3 19 • Deutsche booked transformation effects of €420m in Q3 19 • Total revenues were down by 15% to €5.3bn • Additional strategy move charges of more than €1bn in Q4 19 expected

So far so good

The group posted a strong set of results showing faster and stronger-than-expected net interest margin expansion and no signs of a deterioration and above all anxiety on the asset quality front. It remains to be seen if the UK government will allow banks to hold on to the benefit of interest rate increases and if the UK economy proves as resilient as expected.

Sustainably robust results which we expect to trigger distributions

Legal & General disclosed strong HY 22 results, albeit in line with the consensus’ expectations. With most of the metrics improving on a yoy and sequential basis, we believe that the strong solvency position, in an environment with (sustainable?) higher yields, should trigger capital distributions to shareholders at the year-end.

And another layer of distributions

Aviva unveiled a fair operating result. While, in line with the insurance industry, Aviva saw a strongly negative impact from financial assets revaluation, the solvency position improved materially, yielding additional capital distributions. Once distributions cease, we believe that Aviva could be a takeover target.

Review of Electricity Market Arrangements - REMA Could Bring Benefits

Last week, the UK government published the consultation paper on its Review of Electricity Market Arrangements (REMA). Any change potentially represents uncertainty in a market that has been wary of changes with a number of shares falling after early details of possible reforms were flagged in the press. We review the possible changes and conclude that while there is some risk, from what we can see at present the likely outcomes could be either minimal or beneficial for investors in clean energy

Cenkos:Duke Royalty Ltd -Record revenues keep on rolling

Cenkos:Duke Royalty Ltd -Record revenues keep on rolling

SHORE CAPITAL - H&T Group (HAT) - House stock at 411p

Hybridan Small Cap Feast 09/08/22

Dish of the day Joiners: No joiners today. Leavers: No leavers today. What’s cooking in the IPO kitchen?** Unigel Group, intends to join the Aquis Growth Market. Unigel Group is a pioneer in the field of thixotropic gels for the fibre optic cable industry. The Company is also a supplier of laminated steel tapes to the fibre optic cable industry in the US. Thixotropic gels and laminated steel tapes are essential components to the rapidly growing global fibre optic cable market. The Group exports

H&T Group (HAT) - House Stock, 411p - Golden oldy … celebrating 125 years

Hybridan Small Cap Feast 21-07-2022

Dish of the day Joiners: No joiners today. Leavers: No leavers today. What’s cooking in the IPO kitchen? Unigel Group, intends to join the Aquis Growth Market. Unigel Group is a pioneer in the field of thixotropic gels for the fibre optic cable industry. The Company is also a supplier of laminated steel tapes to the fibre optic cable industry in the US. Thixotropic gels and laminated steel tapes are essential components to the rapidly growing global fibre optic cable market. The Group export

Robust AUMs in a challenging environment

Great results posted by M&G, which recorded very resilient AUMs. The firm managed to outperform the consensus despite the tough environment. While the management avoided any capital plans comments, the resilient solvency position leaves great prospects while the current share buyback is still far from being completed.

Zeus: Technology Quarterly review - August 2022

This quarter’s key observations • Subsector performance: Marketplaces was by far the best performing subsector from an aggregate share price perspective (up 19.9%) vs. an average –5.2% for the other five subsectors. UK Digital Media was the worst performing subsector with a -12.4% aggregate share price move. • Valuation trends: UK Managed Services saw the largest EV/ EBITDA derating (-2.1x) and is now on the lowest EV/Sales multiple (1.5x FY1) and second lowest average EV/EBITDA (11.3x FY1

NextEnergy Solar Fund - Fund Secures CfD Wins

NESF has boosted its effective electricity price hedging with the winning of 86W under the UK’s CfD renewable support scheme. This provides an index-linked 15-year income stream providing a strong underpinning to the fund’s earnings.

Morning Note – 1 August 2022

Purplebricks (PURP LN) - New team: new strategy

Purplebricks full year results provides the detail behind its May pre-close update (i.e. 40,141 instructions; £70m revenue; £8.8m EBITDA loss and £43.2m cash) and details Purplebricks’ plan to return to operational cash generation.

Q2 2022 Activities Update

Trident Royalties Plc (AIM: TRR) has, this morning, provided an update on its activities undertaken during the quarter ended 30 June 2022. Most of the elements of the update had already been announced in another busy quarter for the company as management finessed existing contracts. Momentum remains powerful with a 155% QoQ (15x YoY) increase in net revenue to $5.7m. The contributory components of this were varied with Koolyanobbing comfortably ahead of our forecasts whilst the gold offtake port