Deutsche Bank reiterates outlook after record quarter

(Sharecast News) - Deutsche Bank saw profits surge in the first quarter, the German lender confirmed on Tuesday, following a bumper performance in its investment banking division. Group revenues improved 10% in the first three months of the year, to €8.5bn, boosted by a strong trading performance amid the spike in global market volatility.

Pre-tax profits came in at €2.8bn, up 39% year-on-year and comfortably ahead of forecasts.

Within that, the investment bank saw pre-tax profits jump 22% to €1.5bn, while the corporate bank posted a 3% uplift, at €632m. Profits were further supported by a reduction in costs.

Post-tax profits of €2.01bn, the highest quarterly figure for 14 years, were also ahead of forecasts, for around €1.84bn.

Christian Sewing, chief executive, said: "We are very happy with first-quarter results, which put us on track for delivery of all our 2025 targets.

"This puts us in a very strong position to support our clients through a fast-changing geopolitical and macroeconomic environment."

James von Moltke, chief financial officer, added: "Our strong balance sheet across all metrics, including a 13.8% CET1 capital ratio, positions us well to navigate through unsettled markets."

The post-tax return on average tangible equity was 11.9%, comfortably ahead of the 8.7% achieved in the prior quarter and in line with the bank's 2025 target of above 10%.