Deutsche Bank (DBKGn.DE) has announced a record first-quarter net profit, reaching 1.912 billion euros ($2.22 billion), marking the largest in its history. This milestone was achieved despite setting aside 90 million euros ($105 million) for the impact of the Middle East conflict and experiencing depressed revenue at its global investment bank partly due to a weaker dollar. Christian Sewing, who took the helm as CEO in 2018 tasked with turning around Germany’s largest lender, described the achievement as “even more remarkable given the increasingly uncertain geopolitical environment.” Deutsche Bank is Germany’s largest lender, providing a comprehensive suite of financial services encompassing investment banking, retail banking, and corporate banking.
The robust quarterly net profit attributable to shareholders was an increase from 1.775 billion euros in the prior year’s corresponding quarter and surpassed analysts’ expectations of 1.768 billion euros. However, analysts from Citi deemed the results mixed, and RBC noted that increased provisions “dampen the excitement.” Provisions for credit losses rose to 519 million euros from 471 million euros a year ago, exceeding forecasts, partly due to a single commercial real estate exposure and the 90 million euros allocated for geopolitical risks. Shares in Deutsche Bank dipped 2.6% in early trading following the announcement, as European lenders grapple with a rising risk environment flagged by Standard & Poor’s.
While the global investment bank remained the primary revenue contributor, its revenue remained flat as anticipated, partly influenced by the weaker dollar affecting euro-denominated earnings. Within this division, fixed-income and currency trading revenue saw a modest 1% decline, outperforming expectations of a 3% fall. In comparison, competitors like JPMorgan reported a 21% increase, while Goldman Sachs experienced a 10% decrease in this segment. Deutsche Bank has nonetheless upgraded its 2026 revenue outlook for the investment bank, anticipating higher rather than just slightly higher figures as April deals show signs of recovery. Retail banking revenue rose 5%, slightly ahead of expectations, though the corporate bank recorded a 3% revenue drop.
