Deutsche Bank achieved the highest quarterly profit before tax in the last 14 years, but at the same time warned the possible negative effects of American customs.
Profit before tax in the first quarter 2025. 39 percent increased by 2.8 billion euros, surpassing analysts for 7 percent.
Revenues increased ten percent, reaching the highest level in the last ten years, encourage intensive bond trade and currencies in the conditions of increased global market volatility. Costs were reduced by 2 percent thanks to lower case costs.
“The results make us clearly on the path of fulfilling all targets for 2025. year,” Christian Sewing Executive Director on Tuesday, while the bank enters the key year, which emphasizes its current long-term strategy.
Return to tangible capital amounted to 11.9 percent in the first quarter, which is three percentage points more than the year earlier and above the bank of more than 10 percent for 2025. year, investor me.
Cost and income ratio – a key effect of efficiency – has been significantly improved to 61.2 percent, compared to 68.2 percent the year, which is better than the target 65 percent.
The results of the Investment Bank are supported on record revenues from the bond and currency trafficking sectors, which increased by 17 percent per annum. This growth was partially mitigated by falling income from placement and consultation by 8 percent, after significant write-offs on one non-incumminated position in the Leveraged Finance sector.
The results of the Deutsche Bank follow the broader trend among global banks that benefited from the market volatility caused by US customs, although fears of corporate bankruptcy and reduced investment activities already negatively affect market sentiment.
While reservations for uncollectible loans decreased by 27 percent of the annual basis, the total reservation for loans increased to 471 million euros, which is 16 percent more than expected.
The Bank stated that 130m euros were reserved for tidy loans, with additional amounts associated with the uncertainties regarding the geopolitical and macroeconomic situation in the United States.
“The shadow of the possible global trade war remains hovering over markets,” Sewing warned in the message to employees. “And as we hope that escalation will not occur, uncertainty and volatility will probably remain high in the foreseeable future.”
