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Deutsche Bank Q1 Profit Climbs, To Meet FY22 Targets; Stock Down

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Shares of German banking major Deutsche Bank were losing around 5 percent in German trading despite reporting significantly higher profit in its first quarter reflecting growth across core businesses.

All businesses delivered results in line with or ahead of targets, and the company produced highest quarterly profit for nine years.

James von Moltke, Chief Financial Officer, said, "In a challenging environment, we delivered both revenue and profit growth across all core businesses. Our first quarter revenues demonstrate clear momentum towards our 2022 objectives. We believe this momentum, combined with continued cost discipline and organic capital generation, positions us well for delivery on our 2022 targets."

At its Investor Deep Dive on March 10, Deutsche Bank announced an acceleration of its targets for sustainable financing and investment volumes for the second time. The bank now aims to achieve cumulative volumes since January 2020 of over 200 billion euros by the end of 2022, a year earlier than previously, and a further 100 billion euros per year from 2023 to 2025, reaching a cumulative total of over 500 billion euros by the end of 2025.

The bank expects net revenues arising from the volumes categorized under Deutsche Bank's Sustainable Finance Framework to be in excess of 1.5 billion euros in 2025.

For the first quarter, profit attributable to shareholders rose 17 percent to 1.06 billion euros from 908 million euros in the same quarter last year.

Quarterly profit before tax was 1.7 billion euros, the highest quarterly post-tax profit since 2013, and 4 percent higher than last year. The result was achieved despite a 28 percent increase in Deutsche Bank's annual bank levies to 730 million euros, recognized in the first quarter.

Corporate Bank segment profit climbed 25 percent, and the growth was 1 percent in Investment Bank, 54 percent in Private Bank, and 12 percent in Asset Management segment. Further, Capital Release Unit cut loss before tax by 17 percent.

Net revenues for the first quarter were 7.33 billion euros, up 1 percent from prior year's 7.23 billion euros, and the highest since the first quarter of 2017. Revenue growth in Deutsche Bank's core businesses more than offset negative revenues in the Capital Release Unit.

Revenues from Corporate Bank grew 11 percent, Investment Bank went up 7 percent, Private Bank went up 2 percent, and Asset Management grew 7 percent.

In Germany, Deutsche Bank shares were trading at 9.60 euros, down 5.15 percent.

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