Deutsche Bank has reported a 10% increase in first-quarter profit, exceeding expectations. The net profit attributable to shareholders was 1.275 billion euros, surpassing the analyst forecast of 1.23 billion euros. This marks the bank’s highest first-quarter profit since 2013 and its 15th consecutive quarterly profit. The group revenue also saw a 1% year-on-year rise to 7.8 billion euros, driven by growth in commissions and fee income, as well as the strength in fixed income and currencies.

Revenues at the investment bank surged by 13% to 3 billion euros, following a 9% decline in the full-year 2023. The recovery in this division was attributed to growth in financing and credit trading revenue, positioning it as Deutsche Bank’s highest-earning unit. This turnaround in the investment banking unit played a pivotal role in driving overall profitability for the bank.

Some of the key highlights from the first quarter include net inflows of 19 billion euros across the Private Bank and Asset Management divisions. The credit loss provision decreased to 439 million euros from 488 million in the fourth quarter of 2023. Additionally, the common equity tier one (CET1) capital ratio, a measure of bank solvency, stood at 13.4%, slightly lower than the 13.6% reported at the same time last year.

Deutsche Bank’s Chief Financial Officer, James von Moltke, expressed optimism about the momentum across all four businesses, stating that the positive trend is sustainable. The bank has remained committed to delivering on its cost-cutting measures and enhancing capital returns, which has translated into strong financial performance in the first quarter.

In response to the changing market dynamics, Deutsche Bank announced plans to reduce its workforce by 3,500 jobs over the coming years. This move is part of the bank’s strategic initiative to achieve 2.5 billion euros in operational efficiencies, with the aim of boosting profitability and enhancing shareholder returns. By aligning its operations with the evolving market landscape, Deutsche Bank aims to remain competitive and drive sustainable growth in the long run.

Overall, Deutsche Bank’s strong first-quarter performance reflects its resilience and strategic focus on improving key business segments. The bank’s ability to surpass analyst expectations and deliver consistent profitability underscores its commitment to driving value for its shareholders and stakeholders. With a positive outlook for the future and strategic initiatives in place, Deutsche Bank is well-positioned to navigate challenges and capitalize on opportunities in the global financial landscape.

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