Deutsche Bank has made a comeback with a 10% increase in first-quarter profit, surpassing expectations and showcasing an ongoing recovery in its investment banking division. Net profit attributable to shareholders was reported at 1.275 billion euros, exceeding the aggregate analyst forecast of 1.23 billion euros. This achievement marks the bank’s highest first-quarter profit since 2013 and the 15th consecutive quarter of profit. Group revenue also rose by 1% year-on-year 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 revenues increased by 13% to 3 billion euros, reversing a 9% decline experienced in the full-year 2023.
In addition to the impressive financial results, other first-quarter highlights for Deutsche Bank included net inflows of 19 billion euros across the Private Bank and Asset Management divisions. The credit loss provision decreased to 439 million euros from 488 million in the fourth quarter of 2023, indicating a positive trend in risk management. The common equity tier one (CET1) capital ratio, a crucial measure of bank solvency, stood at 13.4%, slightly lower than the previous year but still at a healthy level.
Deutsche Bank’s Chief Financial Officer, James von Moltke, expressed confidence in the bank’s performance, stating, “There’s momentum in the businesses, actually across all four businesses, and we do think it’s sustainable.” He emphasized the bank’s commitment to controlling costs and enhancing capital returns in the quarter, highlighting a strategic focus on long-term sustainability and profitability. Looking ahead, the bank aims to build on this momentum and drive further growth in its key business segments.
As part of its strategic plan, Deutsche Bank announced significant cost-saving measures, including the reduction of 3,500 jobs over the coming years. This initiative is aimed at achieving 2.5 billion euros in operational efficiencies to improve profitability and deliver greater returns to shareholders. The bank’s focus on optimization and efficiency reflects a forward-looking approach to navigating a competitive and rapidly evolving financial landscape.
Deutsche Bank’s strong first-quarter performance signals a revival for the financial institution, driven by robust growth in its investment banking unit and a commitment to strategic cost management. With a solid foundation in place, the bank is poised to capitalize on emerging opportunities and deliver sustained value to its stakeholders in the months and years ahead.