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908 million euros profit: Deutsche Bank reports best first quarter since 2014

2021-04-30T21:22:25.082Z


Germany’s largest financial institution has not started a year this strong for a long time: Despite the pandemic, Deutsche Bank is generating almost a billion in profits. One area was particularly profitable.


Good news: Deutsche Bank boss Christian Sewing has good numbers to announce this time (archive image)

Photo: Thomas Lohnes / Getty Images

In the first three months of 2021, Deutsche Bank earned better than it had in seven years - and thus laid the foundation for the targeted annual profit.

After taxes and interest payments on certain bonds, Deutsche Bank shareholders posted a profit of 908 million euros in the first quarter.

The institute has thus exceeded the expectations of the analysts.

Group earnings rose to 7.2 billion euros - 14 percent more than in the same period of the previous year.

In 2020, Deutsche Bank had posted a loss of 43 million euros in the first quarter.

Nevertheless, Germany's largest financial institution managed its first surplus since 2014 at the end of the year.

In the first three months of 2021, investment banking in particular generated profit.

Once again, business with fixed-income securities and currencies did particularly well.

The income in the investment bank rose by a third to 3.1 billion euros.

In contrast, the revenues in the private customer bank stagnated at 2.2 billion euros, in the corporate customer business they fell by one percent to 1.3 billion euros.

Like its competitors, Deutsche Bank is struggling with the low interest rates in the euro area.

Significantly less of a burden than in the same period of the previous year came from risk provisioning.

It fell by 86 percent to 69 million euros.

In the first quarter of 2020, the group had significantly increased risk provisioning because it expected a sharp rise in loan defaults due to the corona pandemic that was beginning at that time.

Deutsche Bank wants to continue closing branches

CEO Christian Sewing said that Deutsche Bank would become "sustainably more profitable": "We have again increased our earnings compared to an already strong quarter of the previous year and at the same time remain disciplined with regard to risks and costs."

In view of the growth in investment banking, Germany's largest financial institution was somewhat more confident about the year as a whole.

Income should remain roughly unchanged compared to the previous year: at 24 billion euros.

So far, the bank had assumed slightly lower revenues.

The institute intends to further reduce costs by closing branches and cutting staff.

clh / dpa-AFX / Reuters

Source: spiegel

All business articles on 2021-04-30

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