Deutsche Bank reported a 10% increase in first-quarter profit, surpassing expectations due to the ongoing recovery of its investment banking unit. Net profit attributable to shareholders was 1.275 billion euros, which was higher than the predicted 1.23 billion euros. This marked the bank’s highest first-quarter profit since 2013 and its 15th consecutive quarterly profit. Group revenue also rose by 1% to 7.8 billion euros, driven by growth in commissions and fee income, as well as strength in fixed income and currencies.
The investment bank saw revenues increase by 13% to 3 billion euros, bringing it back as Deutsche Bank’s highest-earning unit after a 9% decline in full-year 2023. The growth was driven by improvements in financing and credit trading revenue. Other highlights of the first quarter included net inflows of 19 billion euros across the Private Bank and Asset Management divisions, a decrease in credit loss provision to 439 million euros from 488 million in the fourth quarter of 2023, and a common equity tier one capital ratio of 13.4%.
Deutsche Bank’s Chief Financial Officer, James von Moltke, expressed confidence in the sustainable momentum of the bank’s businesses, across all four divisions. He highlighted the delivery on commitments related to costs and capital returns in the quarter. The bank aims to continue its positive trajectory and build on its recent successes. The bank also reported strong net profits in the previous quarter and the same quarter last year, showcasing its consistent performance and ability to adapt to changing market conditions.
In 2023, Deutsche Bank announced plans to cut 3,500 jobs over the coming years as part of an initiative to achieve 2.5 billion euros in operational efficiencies. The goal is to enhance profitability and increase returns for shareholders. This strategic move aligns with the bank’s broader efforts to streamline operations, reduce costs, and strengthen its overall financial position. Despite challenges in the banking sector, Deutsche Bank remains focused on optimizing its operations and positioning itself for sustained growth and success in the future.
