In This Article:
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Pre-Provision Profit: EUR3.3 billion, up 34% year on year.
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Operating Leverage: 11% with positive operating jaws in each division.
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Post-Tax Return on Tangible Equity: 11.9% for the quarter.
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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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Revenue Growth CAGR: 6.1% since 2021, within the target range of 5.5% to 6.5%.
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Loan Growth: EUR4 billion during the first quarter, adjusted for FX effect.
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Deposit Growth: EUR6 billion during the first quarter, adjusted for FX effect.
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Net Interest Income: EUR3.3 billion, broadly stable quarter on quarter.
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Liquidity Coverage Ratio: Increased to 134%.
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Common Equity Tier 1 Ratio: 13.8% at the end of the first quarter.
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Leverage Ratio: 4.6%, up by 1 basis point.
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MREL Surplus: EUR22 billion at the end of the quarter.
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Issuance Plan: EUR15 billion to EUR20 billion for 2025 funding requirements.
Release Date: April 30, 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) delivered a pre-provision profit of EUR3.3 billion, up 34% year on year, showcasing strong operational performance.
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The bank achieved a compound annual growth rate of 6.1% in revenue since 2021, within its target range of 5.5% to 6.5%.
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Revenue quality is robust, with 71% coming from predictable streams in corporate banking, private banking, asset management, and fixed financing.
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Non-interest expenses declined by 2% year on year, reflecting effective cost management and operational efficiencies.
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The liquidity coverage ratio increased to 134%, driven by strong deposit inflows, indicating a solid liquidity position.
Negative Points
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Geopolitical uncertainty and volatility are expected to remain elevated, potentially impacting future performance.
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Loan growth in the corporate and private bank segments remained flat due to macroeconomic headwinds affecting client demand.
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The corporate bank's net interest income was slightly down compared to the prior quarter due to accounting reclassification effects.
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The CET1 MDA buffer reduced by 11 basis points quarter on quarter, reflecting higher capital requirements.
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The bank faces challenges in achieving its net interest income target of EUR13.6 billion due to FX headwinds and lower ECB rates.
Q & A Highlights
Q: Could you provide guidance on the impact of the recently announced reduction in the systemic residential real estate buffer on your capital ratios and the timing? A: Richard Stewart, Group Treasurer: The impact on our MDA will be just under 10 basis points. This reduction is welcome and supports lending to the real economy. We feel we have reached a high water mark in terms of our MDA.