Shares spark as Deutsche sees quarterly profits jump

Shares in Deutsche Bank rallied on Wednesday, after the German lender posted its highest quarterly profits for seven years.

The bank reported pre-tax profits of €1.6bn in the three months to 31 March, up from €206m in the equivalent period in 2020. Net profit was €908m compared to last year’s net loss of €43m.

Group net revenues rose 14% to €7.2bn, the highest quarterly revenues since the first quarter of 2017.

Deutsche also increased its full-year outlook on the back of the results. Revenues are now expected to be “essentially flat” compared to previous guidance for a decline year-on-year.

As at 1215 GMT, shares in Deutsche were trading 9% higher.

Christian Sewing, chief executive, said: “Our first quarter is further evidence that Deutsche Bank is on the right path in all four core businesses, and is building sustainable profitability.

“In addition…we demonstrated cost and risk discipline. We achieved a post-tax return on tangible equity of above 7%, and returns in the core bank are already ahead of our ambitions for next year. These results give us confidence that we’ll reach our 2022 targets.”

Profits improved across all the bank’s core divisions, but the investment bank was the strongest, with pre-tax profits ahead 134% at €1.5bn.

Deutsche also appeared to have escaped relatively unscathed from the high profile collapse of one of its client, Archegos Capital. The New York family office collapsed in March, leaving the banks that had lent it money sitting on a massive losses. But Deutsche told journalists it had been able to unwind its positions cleanly.