Deutsche Bank achieves highest quarterly profit in 11 years with help from trading operations

Deutsche Bank has reported its highest quarterly profits in 11 years, driven by strong performance in trading and investment banking. The German lender announced that its first quarter net income rose by 10% to €1.45bn, surpassing analysts’ expectations.

The bank’s investment bank saw a 13% increase in revenues to €3bn, with fixed-income trading up by 7% and origination and advisory jumping by 54%. This growth was fueled by a resurgence in global dealmaking after a two-year slump.

CEO Christian Sewing expressed confidence in the bank’s ability to meet its ambitious 2025 targets for revenue growth, cost cuts, and return on equity. Deutsche Bank’s shares have surged by over 60% in the past year to €15.40, reaching their highest level in seven years.

Costs decreased by 6% in the quarter, pushing the bank’s cost-income ratio to its lowest level in more than a decade. Despite setting aside €439mn for bad loans, down from the previous quarter, the bank’s return on tangible equity stood at 8.7%.

Deutsche Bank’s asset management unit, DWS Group, also reported record-high assets under management of €941bn, driven by inflows into low-margin passively managed funds. The bank’s common equity tier 1 ratio, a key measure of balance sheet strength, remained strong at 13.4%.

While the private and corporate banking divisions saw declining revenue, the overall performance of Deutsche Bank in the first quarter signals a positive outlook for the future.