Deutsche Bank Shares rose 6% on Thursday afternoon after the German lender reported a 10% rise in first-quarter profit, beating expectations as its investment banking unit continues to recover.
Net profit attributable to shareholders was 1.275 billion euros ($1.365 billion) in the period, beating analysts’ overall forecast of 1.23 billion euros for the period, according to LSEG data.
Deutsche Bank said this was its highest first-quarter profit since 2013. It was also the bank’s 15th consecutive quarterly profit.
Group revenue rose 1% year-on-year to 7.8 billion euros, which the bank attributed to growth in commission and fee income as well as strength in fixed income and currencies. According to LSEG, the sales figures also exceeded the analyst forecast of 7.73 billion euros.
The investment bank’s revenue rose 13% to 3 billion euros, after a 9% slump in full-year 2023 that reduced overall profits. The performance means the division is once again Deutsche Bank’s highest-earning unit due to growth in financing and loan trading revenues.
Other first quarter highlights included:
- Net inflows of 19 billion euros in the private banking and asset management divisions.
- Loan loss provisions amounted to 439 million euros, a decrease from 488 million in the fourth quarter of 2023.
- The common equity Tier 1 capital ratio (CET1) – a measure of a bank’s solvency – was 13.4%, compared to 13.6% at the same time last year.
“There is momentum across the businesses, actually across all four businesses, and we believe it is sustainable,” James von Moltke, Deutsche Bank’s chief financial officer, told CNBC’s Annette Weisbach on Thursday.
“We are delivering on our cost and return on capital commitments this quarter.”
Germany’s largest lender reported a net profit of 1.3 billion euros in the previous quarter and 1.16 billion euros in the first quarter of the previous year.
In 2023, the bank announced it would cut 3,500 jobs over the coming years as it seeks €2.5 billion in operational efficiencies to increase profitability and increase returns to shareholders.
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2024-04-25 12:12:57
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