Deutsche bank exceeds expectations, best quarterly profit in fourteen years
Profits at EUR 2 billion in the first three months of the year, up 39% compared to the same period in 2024,
2' min read
2' min read
Deutsche Bank's net profit soared to EUR 2bn in the first three months of the year, posting 39% growth compared to the same period in 2024, the best result for 14 years. Revenues also increased by 10% to EUR 8.5bn, while CET1 remained unchanged at 13.8%, the return on tangible pre-tax capital (Rote) rose to 11.89%, exceeding the target of 10% in 2025, and the all-important cost-to-income ratio (operating expenses/brokerage margin) normalised to 61.2%, below this year's target of 65%.
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.These historic results for the German banking giant were achieved just before the fateful 2 April, the day of Donald Trump's shock announcement on new tariffs that triggered a geopolitical earthquake. For top management, the first quarter of the year nevertheless bodes well for 2025: 'We are very pleased with our first-quarter results, which allow us to achieve all our targets for 2025,' said CEO Christian Sewing. "Our best quarterly profit in fourteen years, achieved through revenue growth and cost reductions, shows that our Global Hausbank strategy is working well and puts us in a very strong position to support our customers in a rapidly changing geopolitical and macroeconomic environment." The hot reaction of the Frankfurt Stock Exchange proved him right: the share started trading with a rise of about 3%, touching EUR 23.40.
In response to a question from Sole24Ore on the rising geopolitical risks, in the call with journalists Chief Financial Officer and number two James von Moltke emphasised that the bank 'remains very vigilant' and as instructed by supervisors manages geopolitical risks with the tool of stress tests: 'we are on the alert, we follow the guidelines of regulators and supervisors, we create hypothetical scenarios and simulate our responses and this allows us to act promptly to events that occur. We strictly enforce sanctions and do not interact with customers flagged and banned by institutions. Geopolitics is a risk but also an opportunity for a bank like ours that operates on a global scale'.
Although the greatest turbulence is occurring in the US, Deutsche bank believes that the US market and economy continue to be crucial: the bank has 20 per cent of its employees, revenues and capital absorption in the US, which for von Moltke represents "a competitive strength" especially at a time when capital outflows from the US are pouring in as investments in Europe.
Provisions in the first quarter of this year were in line with expectations and within the guidance range of 2025. Another important indicator of soundness, especially in times of great uncertainty and extreme volatility, is the high liquidity: in the first quarter the liquidity coverage ratio rose to 134% compared to 131% at the end of 2024, a surplus of EUR 58bn over the prudential requirement.
