The German banking giant Deutsche Bank published on Wednesday a net profit group share of 1.06 billion euros (1.09 billion francs) in the first quarter, the best for nine years thanks to the savings generated by its heavy restructuring.
Overall revenues, at 7.3 billion euros, are up 1% over one year, and 3% in core business activities, driven by corporate customers. Taxable income stands at 1.66 billion, which is performance in line with analysts’ expectations.
The best contribution to the result comes from the investment bank, whose revenues rose by 7% over one year, to 3.3 billion euros, including 15% in the trading of fixed-rate securities and currencies. Taxable income reached 1.5 billion euros, up 1%.
The corporate bank saw its revenues increase by 11%, to 1.5 billion euros – the best quarterly performance since the restructuring launched in July 2019.
During the past quarter “the emphasis was placed on the ability of our customers to adapt as quickly as possible to the new geopolitical situation and to protect themselves once morest risks”, commented Christian Sewing, Chairman of the Management Board, in a communicated.
The bank continues its discipline on costs, which fell 4% year-on-year to 5.4 billion euros, integrating a 159 million euro increase in the levy for a banking sector relief fund, to 730 millions of euros.
At the end of March, Deutsche Bank incurred 98% of the total of 8.6 billion euros in terms of restructuring costs expected between 2019 and the end of 2022.
Although the war in Ukraine has introduced a higher degree of uncertainty, the bank says it is well positioned to deliver an following-tax return on equity of 8% for the year. This ratio reached 8.1% in the first quarter.
Exposure to Russia was reduced from January to March, with in particular loans in the portfolio reduced to 1.3 billion euros, down 5%.
/ATS
