Deutsche Bank has reported a significant 10% increase in first-quarter profit, surpassing market expectations. The net profit attributable to shareholders reached 1.275 billion euros, exceeding the analyst forecast of 1.23 billion euros. This achievement marks the highest first-quarter profit for the bank since 2013. Furthermore, the bank has maintained its track record of 15 consecutive quarters of profitability.
The group’s revenue saw a 1% year-on-year increase to 7.8 billion euros, driven by a rise in commissions, fee income, and strength in fixed income and currencies. Notably, the investment bank’s revenues surged by 13% to 3 billion euros, indicating a significant recovery from a 9% decline in the previous year. This improvement was fueled by growth in financing and credit trading revenue, making the investment bank the highest-earning unit for Deutsche Bank.
Aside from the impressive financial figures, the bank also experienced net inflows of 19 billion euros in its Private Bank and Asset Management divisions during the first quarter. Additionally, credit loss provisions decreased to 439 million euros from 488 million in the previous quarter. The common equity tier one (CET1) capital ratio, a key measure of bank solvency, stood at 13.4%, slightly lower than the same period last year.
Deutsche Bank’s Chief Financial Officer, James von Moltke, expressed confidence in the sustainability of the bank’s momentum across all its business divisions. He highlighted the commitment to cost management and capital returns, which have been reflected in the first-quarter results. Looking ahead, the bank aims to enhance operational efficiencies by cutting 3,500 jobs over the coming years and targeting 2.5 billion euros in cost savings to improve profitability and shareholder returns.
Deutsche Bank’s first-quarter performance showcases a remarkable turnaround in its financial results, driven by revenue growth, recovery in the investment banking unit, and effective cost-saving initiatives. The bank’s consistent profitability and strategic focus on enhancing operational efficiency position it well for sustained success in the future.
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