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Deutsche Bank Warns of Costs as Inflation Headwinds Build

  • Lender says key profitability harder to reach as costs surge
  • But revenue is benefiting from trading rally, higher rates
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Deutsche Bank Scraps Cost Target as Inflation Builds
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Deutsche Bank AG scrapped a cost target and warned its main profitability goal was getting harder to reach, as the economy weakens and the war in Ukraine, surging inflation and litigation drive up expenses.

The muted outlook, published Wednesday along with second-quarter results, overshadowed a strong performance at the corporate bank, which benefited from higher interest rates, as well as in fixed-income trading, which beat Wall Street in a volatile market.