Deutsche Banks releases financial results for the first quarter of 2023.

Deutsche Bank reported its first quarter results this week, recording a €1.9 billion ($2.1 billion) pre-tax profit in the first quarter, up 12 per cent year-on-year. 

Net profit was up 8 per cent to €1.3 billion, and net revenues grew 5 per cent to €7.7 billion, while the group’s cost to income ratio was 71 per cent, the bank said in a statement. 

The private bank also delivered net revenues of €2.4 billion, up 10 per cent on the same period a year earlier, driven by strong net interest income. Revenues in the private bank Germany were up 14 per cent year-on-year, while the international private bank grew revenues by 3 per cent, the firm said. 

Net inflows were €6 billion during the quarter, driven by inflows into investment products, the firm continued. Assets under management also grew by €13 billion to €531 billion during the quarter, reversing the decline of the previous quarter, driven by net inflows into investment products and rising market levels, the firm added.

The bank said that sustainability is one its priorities: the private bank delivered €5 billion growth in ESG assets under management and €1 billion in ESG new client lending, raising the private bank’s cumulative total to €53 billion, the Frankfurt-headquartered lender said in a statement yesterday. 

Meanwhile, for Deutsche Bank’s annual general meeting on 17 May, the management board and the supervisory board formally proposed payment of a cash dividend of €0.30 per share in respect of 2022, up 50 per cent from 2021. The bank also said that it is committed to further capital distributions in 2023. Given its strong first quarter performance, the bank said that management has initiated a dialogue with supervisors to enable 2023 share repurchases and it expects to commence buybacks in the second half of 2023.

Claudio de Sanctis, global head of the international private bank and CEO EMEA said: “The international private bank continued to grow revenues and net new assets in the first quarter of 2023, which speaks to the strength of our strategic execution, our robust risk frameworks, and the commitment of our people to serve our clients all over the world.”

“The combined strength of our wealth management and bank for entrepreneurs' business and the transformation of our premium banking offering is creating a strong and diversified asset base on which the award-winning IPB continues to grow and contribute positively to Deutsche Bank’s global hausbank strategy,” he said.