Deutsche Bank first quarter 2024 earnings | Wilnesh News

Deutsche Bank First-quarter profit reported on Thursday rose 10%, beating expectations as its investment banking unit continues to recover.

Shareholder net profit for the period was 1.275 billion euros ($1.365 billion), higher than analysts’ overall forecast of 1.23 billion euros for the period, according to LSEG data.

Deutsche Bank said it was its highest first-quarter profit since 2013.

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. Revenue was also higher than analysts’ forecast of 7.73 billion euros, according to LSEG.

Revenue from its investment banking business rose 13% to 3 billion euros, while full-year revenue fell 9% in 2023, dragging down overall profits. The performance returns the unit to Deutsche Bank’s top spot in terms of financing and credit trading revenue growth.

Other highlights from Season 1 include:

• The private banking and asset management sector saw net inflows of €19 billion.
• Provision for credit losses was 439 million euros, down from 488 million euros in the fourth quarter of 2023.
• The common equity tier 1 (CET1) capital ratio, a measure of a bank’s ability to repay debt, was 13.4%, compared with 13.6% in the same period last year.

“There’s actually momentum in all four businesses and we do have momentum,” Deutsche Bank Chief Financial Officer James von Moltke told CNBC’s Annette Weisbach on Thursday. Consider this sustainable.

“We are meeting our commitments on cost and capital returns this quarter.”

Germany’s largest bank reported a net profit of 1.3 billion euros in the last quarter, compared with a net profit of 1.16 billion euros in the first quarter of last year.

In 2023, the bank announced that it would cut 3,500 jobs over the next few years, with the goal of improving operating efficiency by €2.5 billion to improve profitability and increase shareholder returns.