FRANKFURT (Reuters) – Deutsche Bank posted an 8 percent fall in third-quarter net profit on Wednesday, smaller than expected, as lower revenue at its investment bank was offset by performance in retail banking and financing thanks to the increase in interest rates.

Net profit attributable to shareholders reached 1.031 billion euros compared to 1.115 billion euros a year earlier.

Analysts expected a profit of around 937 million euros.

Deutsche Bank, Germany’s largest bank, was slightly more optimistic about its full-year revenue outlook, now forecasting net banking income of around 29 billion euros.

These results highlight trends in the global banking sector, with investment banks facing challenges in subdued transaction and trading activity as high interest rates prove to be a boon for other divisions.

Despite the decline, Deutsche Bank recorded its thirteenth consecutive quarter of profits, after years of heavy losses.

“These results demonstrate strong and sustained business growth, combined with continued cost discipline,” said CEO Christian Sewing.

Retail banking, currently undergoing a strategic review, once again represented the largest source of revenue during the quarter and according to analysts, it is expected to become the main revenue driver for the full year, surpassing the investment bank.

Revenue at the investment bank fell 4% in the quarter, compared to an expected decline of 5%.

The financing division slightly exceeded expectations with revenue growth of 21%. Retail banking, for its part, recorded an increase of 3%, below forecasts of 5%.

(Reporting Tom Sims and Frank Siebelt; Writing by Miranda Murray and Gerry Doyle; Dagmarah Mackos, editing by Blandine Hénault)

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