Uncertainty also hit deal-making and demand for leveraged loans, a kind of riskier financing used to fund private-equity buyouts.

Profit for the quarter ended Sept. 30 rose to €1.24 billion, the equivalent of nearly $1.24 billion, from €329 million a year earlier. The figure was higher than an average analyst consensus of about €1 billion. Revenue rose 15%.

The bank said it was its highest third-quarter pretax profit since 2006, in spite of an increasingly tough environment. Chief Executive

Christian Sewing

warned costs in particular are being hit by inflation.

“We will therefore continue to scrutinize expenditure carefully, just as carefully as we monitor our risks in view of the difficult economic environment,” he said.

Inflation has been rising steadily around the world. To lower it, central banks are raising interest rates, which has hit companies and households with higher borrowing costs and slowed down economies. Germany is also grappling with gas shortages from Russia, which is hurting energy-intensive industries.

The uncertainty has rattled markets, casting a chill over on mergers, initial public offerings and leveraged financing. Deutsche Bank’s investment-banking business relies less on that and more on the trading of currencies and bonds, which booms in volatile times. That has helped the bank outperform Wall Street peers in recent quarters.

The investment bank reported a 6% rise in revenue, with fixed-income trading offsetting a sharp fall in other business lines.

In its bread-and-butter business of lending, Deutsche Bank benefited from the higher interest rates it was able to charge customers and higher loan volume, as companies continued to borrow to pay for higher costs of doing business.

Further expected rate rises from the European Central Bank will continue to lift the business, although a recession could start hitting borrowers’ appetite for more loans—and their ability to repay them. An ECB lending survey released Tuesday showed eurozone banks expect loan demand to fall in the fourth quarter. Credit standards have already tightened.

Deutsche Bank increased provisions for bad loans in the quarter to €350 million, compared with €117 million a year earlier. Large global banks such

JPMorgan Chase

& Co.,

Citigroup Inc.,

and London-based

HSBC Holdings

PLC have also taken similar steps.

For 2022, the bank has promised to reach an 8% return on tangible equity—a key metric of profitability—and a cost-to-income ratio of up to 75%. In the third quarter, the figures stood at 8.2% and about 72%, respectively.

Write to Patricia Kowsmann at patricia.kowsmann@wsj.com