Germany's largest private bank has had an unexpectedly good start to the year. Deutsche Bank posted earnings in the first quarter. In the Corona crisis, however, the money house leaves room for the current year.
Frankfurt / Main (dpa) - Deutsche Bank started the year much better than expected by experts. In the first three months, the bank had a profit before taxes of 206 million euros and a profit of 66 million euros, the bank said late Sunday evening in Frankfurt.
This means that profit fell compared to the first quarter, but was significantly better than the analysts surveyed by the company had expected. They had expected a loss due to the consequences of the Corona crisis.
What was particularly surprising was the high yields, which at EUR 6.4 billion were even slightly higher than a year ago. The bank did not disclose how this total revenue was made up. The bank plans to provide details of the first figures on Wednesday. However, possible drivers for the positive earnings trend could have been high demand for lending or other forms of financing for companies as a result of the Corona crisis.
However, the corona pandemic is causing problems in preparing for possible loan defaults. The bank therefore had to increase loan loss provisions to around half a billion euros in the first three months - a year ago the figure was still 140 million euros. The consequences of the Corona crisis are also causing difficulties for the targets for the capital buffer and the debt ratio - but these are only intended to be temporary.
"Given the opportunities for additional business, increased customer demand and the current macroeconomic environment, Deutsche Bank is reviewing its Common Equity Tier 1 and debt targets this year," the bank said. The management board had therefore decided that the capital ratio could temporarily fall below the target value in order to support customers and the economy as a whole in the current crisis.
The bank emphasized that the capital base is still good and well above the requirements of the regulators. This should continue to be the case. "As the aforementioned capital effects are considered temporary, the bank continues to work towards the goal of a core Tier 1 ratio of 12.5 percent and a leverage ratio of 5 percent for 2022."
The bank also reaffirmed its other financial goals. "This includes reducing the adjusted costs without renovation costs and the reimbursable costs in connection with the hedge fund business that will be transferred to BNP Paribas to € 19.5 billion in 2020," it said. In the first three months of 2020, noninterest expenses were € 5.6 billion (previous year: € 5.9 billion), which included the contribution of around € 500 million to the supervisor's Single Resolution Fund.
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