The forecast-beating results, aided by strong revenues on the investment banking side, added to a broadly positive set of figures in private banking and wealth management.

Deutsche Bank has reported today that its pre-tax profit for the first three months of 2024 rose 10 per cent year-on-year to €2.0 billion ($2.14 billion), while net profit also rose 10 per cent to €1.5 billion. The profit result reportedly beat analysts' forecasts, according to LSEG (source: CNBC).

On the private banking side, net revenues slipped 2 per cent year-on-year to €2.4 billion, because slightly lower net interest income was partly offset by growth in investment products. Revenues fell 4 per cent, reflecting higher hedging and funding costs, including the effect of the ending of minimum reserve remuneration.

Revenues in wealth management and private banking held stable as lower deposit revenues were countered by growth in lending and higher revenues from investment products, the Frankfurt-listed bank said.

Total assets under management reached €606 billion, rising €27 billion, helped by €12 billion in net inflows – the highest amount in 12 quarters.

Group results
At the group level, Deutsche Bank said the post-tax return on average tangible shareholders’ equity rose to 8.7 per cent from 8.3 per cent on a year ago; its cost/income ratio narrowed over the year to 68 per cent from 71 per cent. 

“This quarter we achieved double-digit profit growth, and our highest first-quarter profit since 2013, through disciplined execution of our Global Hausbank strategy,” Christian Sewing, chief executive, said. “On all dimensions, we are firmly committed to continued delivery on our path towards our 2025 goals.”

Net revenue grew 1 per cent to €7.8 billion, mainly lifted by rising commissions and fee income. Investment bank revenues were €3.0 billion, rising 13 per cent. There was 14 per cent growth in financing revenues to €805 million, largely reflecting strong securitisation and issuance activity. The investment banking result appeared to grab commentators' attention in the early reactions to the results.

The bank said it cut noninterest expenses by 3 per cent on a year earlier to €5.3 billion.

At the end of March, Deutsche Bank’s Common Equity Tier 1 ratio – a bank’s capital “shock absorber” – was 13.4 per cent. Provisions for credit losses fell 10 per cent to €439 million.