Deutsche Bank First Quarter 2024 Results

German Bank on Thursday it reported a 10% rise in first-quarter profit, beating expectations amid a continued recovery in the investment banking unit.

Net profit attributable to shareholders was 1.275 billion euros for the period, higher than the total analyst forecast of 1.23 billion euros for the period, according to LSEG data.

Deutsche Bank said this was its highest first-quarter profit since 2013. It also marks the bank’s 15th straight quarterly profit.

Group revenues rose 1% year-on-year to 7.8 billion euros, which the bank attributed to growth in commission and commission income, along with the strength of fixed income and currencies. According to LSEG, the revenue print also exceeded analyst forecasts of 7.73 billion euros.

Revenues at the investment bank rose 13% to 3 billion euros, after a 9% slump throughout 2023 that had dragged down overall profits. The performance restores the division as Deutsche Bank’s top-earning division in terms of financing and credit trading revenue growth.

Other first quarter highlights included:

• Net inflow of 19 billion euros at the Private Bank and Asset Management divisions.
• The provision for credit losses amounted to 439 million euros, compared to 488 million in the fourth quarter of 2023.
• The Common Equity Tier 1 capital ratio (CET1) – a measure of banks’ solvency – stood at 13.4%, compared to 13.6% at the same time last year.

“There is momentum in the businesses, actually in all four businesses, and we think that is sustainable,” Deutsche Bank Chief Financial Officer James von Moltke told CNBC’s Annette Weisbach on Thursday.

“We are delivering on our cost and capital return commitments this quarter.”

Germany’s largest lender reported a net profit of 1.3 billion euros in the previous quarter and 1.16 billion euros in the first quarter of last year.

In 2023, the bank announced it would cut 3,500 jobs over the coming years as it pursues 2.5 billion euros in operational efficiencies to boost profitability and boost shareholder returns.