Photo by Kirill Kudryatsev (AFP/Scanpix).
Deutsche Bank’s results reflect a slightly decreasing cost of borrowing. Its negative impact was offset by good investment banking results in the first quarter of this year.
Germany’s largest bank group posted revenue growth of 1% in the first quarter from a year earlier, with retail banking revenue weak on the prospect of lower base interest rates.
Revenues in the business and private banking segments were down 5% and 2%, respectively, driven by lower net interest income. Both segments fared better during a period when central banks raised key interest rates.
Now that the prospect of lower interest rates is becoming more clear, the trend is expected to reverse.
Poorer results in retail and business banking were offset by investment banking. Deutsche Bank’s income from this activity jumped 13% to 3.047 billion. Eur. Such a result exceeded the expectations of analysts – they expected 2.834 billion. The result of investment banking activity reaching EUR.
First-quarter fixed-income trading revenue rose 7%, more than analysts expected and more than most major U.S. investment banks.
“We’re very pleased” with the investment bank’s results, said James von Moltke, the bank’s chief financial officer, noting that the first-quarter trend continued into April.
Revenues from operations in the acquisitions and mergers (M&A) segment jumped 54%.
The bank’s quarterly pre-tax profit increased by 10% to 2.036 billion. EUR, when 2.068 billion was expected. Eur.
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