Deutsche Bank reported a 39% increase in first-quarter net profit, reaching €1.78 billion ($2.03 billion), surpassing analyst expectations of €1.64 billion. The strong performance was primarily attributed to a 17% rise in revenue from its fixed-income and currency trading division, capitalizing on market volatility.
Despite the robust earnings, the bank faced challenges, including a €90 million writedown in its leveraged finance business and increased provisions to address potential impacts from new global tariffs. CEO Christian Sewing emphasized that these results position the bank on track to meet its 2025 targets, stating, “The results put us on track for delivery on all our 2025 targets.”
This quarter marks a significant turnaround for Deutsche Bank, as it has now cumulatively earned more in profit than it lost between 2015 and 2019. However, the bank remains cautious amid economic uncertainties, particularly concerning Germany’s stagnating economy and the potential for a slight recession in 2025, which could affect loan demand and client financial health.
While revenue from origination and advisory services declined by 8%, the bank’s overall performance indicates resilience in its core trading operations. Analysts from Barclays described the results as “good enough for the shares to outperform slightly,” with Deutsche Bank’s shares opening 2.9% higher following the announcement.
As Deutsche Bank navigates the final year of its three-year strategic plan, the focus remains on refining its strategy and setting new targets beyond 2025. The bank’s ability to adapt to market challenges and maintain profitability will be crucial in sustaining investor confidence and achieving long-term growth.
