From CNBC: 2024-04-25 11:57:46

Shares of Deutsche Bank surged to a more than six-year high after reporting a 10% increase in first-quarter profit, beating analyst expectations. Net profit was 1.275 billion euros, marking the bank’s highest first-quarter profit since 2013 and 15th consecutive quarterly profit. Revenue rose 1% to 7.8 billion euros.

The bank’s investment bank saw a 13% increase in revenues to 3 billion euros, reversing a 9% decline in 2023. Other highlights include net inflows of 19 billion euros and a credit loss provision of 439 million euros. The common equity tier one capital ratio stood at 13.4%.

Deutsche Bank Chief Financial Officer James von Moltke expressed confidence in the sustainable momentum of the bank’s businesses. The bank 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, Deutsche Bank announced job cuts and operational efficiencies to boost profitability.

Analysts at Keefe, Bruyette & Woods called the results “reasonable” but highlighted underperformance in some divisions. Credit losses were elevated, and guidance remained unchanged despite higher interest rate expectations. The bank aims to increase shareholder returns through cost-cutting measures.

Read more: Deutsche Bank first-quarter 2024 earnings