Deutsche Bank’s profits rose 10% to $1.36 billion during Q1

Deutsche Bank’s net profits rose 10% to 1.27 billion euros ($1.36 billion) on an annual basis in the first quarter of 2024, exceeding expectations that placed profits at 1.23 billion euros, according to the financial report issued by the bank on Thursday.

According to CNN, the bank’s revenues increased by 1% to 7.8 billion euros during the same period thanks to the growth in commissions and fee income, in addition to the strength of fixed income components, and according to the bank’s report, this quarter’s profits are the highest during the same period since 2013.

The revenues of the investment banking unit also increased by 13% to 3 billion euros during the last quarter, after declining by 9% over the course of the entire year 2023.

The gains mean investment banking has been able to regain its position as Deutsche Bank’s biggest supporter of the giant’s retail division, which has recently benefited from rising interest rates but suffered from glitches in customer service.

“We are strongly committed to continuing to work towards our 2025 goals,” said Christian Sewing, CEO of Deutsche Bank.

These goals include lower cost ratios and increased income, a target that analysts believe may be too ambitious.

Despite the bank’s better-than-expected profits, Deutsche Bank is operating in a weak economy in its home market, even if German corporate sentiment has improved.

Regulators warned that 2024 will be less rosy for German bank profits as the real estate crisis worsens and loans deteriorate.