Deutsche Bank sees quarterly profits jump

First-quarter net revenues rose 1% to €7.3bn, following growth in all four core businesses: corporate, investment and private banking, and asset management. Pre-tax profits rose 4%, to €1.7bn, while net income strengthened 18% to come in at €1.2bn, ahead of analyst expectations.

Christian Sewing, chief executive, said Deutsche had shown “growth and resilience” during the quarter, with all businesses delivering results either in line or ahead of internal targets.

James von Moltke, chief financial officer, added: “In a challenging environment we delivered both revenue and profit growth across all core businesses. Our first-quarter revenues demonstrate clear momentum towards our 2022 objectives.

“We believe this momentum, combined with continued cost discipline and organic capital generation, positions us well for delivery on our 2022 targets.”

Provision for credit losses increased during the quarter, however, rising from €69m a year ago to €292m, while the common equity tier ratio eased to 12.8% from 13.7% a year previously and 13.2% at the end of the fourth quarter.

Deutsche said around half the decline in CET1 was driven by European Central Bank mandated model adjustments, with the rest reflecting growing risks following Russia’s invasion of Ukraine.

The growing risks from the war in Ukraine weighed on the stock, and shares in the lender were down 5% as at 1230 BST.

Neil Wilson, chief market analyst at Markets.com, said rising cost pressures was the “big theme” from the Wall Street banks reporting season this quarter.