In This Article:
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Revenue: EUR8.5 billion, up 10% year on year.
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Cost-Income Ratio: 61% with adjusted costs of EUR5.1 billion.
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Pre-Tax Profit: EUR2.8 billion, up 39% year on year.
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Net Profit: EUR2 billion.
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Return on Tangible Equity (RoTE): 11.9% in the first quarter.
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CET1 Ratio: 13.8%.
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Pre-Provision Profit: EUR3.3 billion, up 34% year on year.
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Net Commission and Fee Income: Increased by 5% year on year.
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Non-Interest Expenses: Declined 2% year on year to EUR5.2 billion.
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Compound Annual Growth Rate (CAGR) Since 2021: 6.1%.
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Capital Distributions: EUR2.1 billion announced this year.
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Liquidity Coverage Ratio: 134%.
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Net Stable Funding Ratio: 119%.
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Diluted Earnings Per Share: EUR0.99.
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Tangible Book Value Per Share: EUR30.43, up 4% year on year.
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Net Interest Income (NII): EUR3.3 billion, broadly stable quarter on quarter.
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Stage 3 Provisions for Credit Losses: EUR341 million.
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Assets Under Management (DWS): Over EUR1 trillion with record net inflows of EUR20 billion.
Release Date: April 29, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Deutsche Bank AG (NYSE:DB) reported a strong first quarter with revenues of EUR8.5 billion, up 10% year on year.
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The bank's pre-tax profit increased by 39% to EUR2.8 billion, and net profit reached EUR2 billion, resulting in a return on tangible equity of 11.9%.
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The cost-income ratio improved to 61%, with adjusted costs of EUR5.1 billion, aligning with full-year guidance.
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The bank's CET1 ratio stands at a robust 13.8%, supporting both client needs and shareholder returns.
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Deutsche Bank AG (NYSE:DB) achieved a compound annual growth rate of 6.1% in revenue since 2021, within its target range of 5.5% to 6.5%.
Negative Points
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The geopolitical landscape and economic uncertainty are expected to remain elevated, potentially impacting the bank's operations.
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Stage 1 and 2 provisions for credit losses were higher, reflecting the uncertain macroeconomic environment.
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The corporate bank had a weaker start in Q1, although it is expected to accelerate in subsequent quarters.
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The investment bank faced a loss on the partial sale and markdown of a specific loan in leveraged debt capital markets.
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There is ongoing uncertainty around the macroeconomic environment, which may affect model-based Stage 1 and 2 provisions.
Q & A Highlights
Q: How does Deutsche Bank view its revenue outlook for the year given the strong Q1 performance and recent market changes? A: Christian Sewing, CEO, expressed confidence in achieving the EUR32 billion revenue target for the year, citing strong Q1 performance and diversification across business segments. He noted that while some areas may face challenges, others, like the private bank and asset management, are showing stable growth. The corporate bank is expected to accelerate, and the investment bank's FIC business is performing well, with opportunities in financing and credit trading.