Workflow
Deutsche Bank Q1 Earnings Rise Y/Y on Higher Revenues & Lower Expenses
Deutsche Bank AGDeutsche Bank AG(US:DB) ZACKS·2025-04-29 15:55

Core Viewpoint - Deutsche Bank reported a strong increase in earnings and revenues for the first quarter of 2025, indicating robust financial performance despite some challenges [1][2][7] Financial Performance - Earnings attributable to shareholders reached €1.78 billion ($2.01 billion), a 39.2% increase year over year [1] - Profit before tax was €2.8 billion ($3.2 billion), up 39.3% year over year [1] - Net revenues were €8.5 billion ($9.7 billion), reflecting a 9.6% year-over-year growth driven by net interest income and commissions [2] - Non-interest expenses decreased by 1.7% to €5.2 billion ($5.9 billion), primarily due to lower general and administrative costs [2] Adjusted Expenses and Provisions - Adjusted non-interest expenses were €5.1 billion, up 1.6% from the prior year [3] - Provision for credit losses increased to €471 million ($535.8 million), a rise of 7.3% year over year [3] Segment Performance - Corporate Bank net revenues were €1.9 billion ($2.1 billion), showing a slight decline year over year due to lower net interest income [4] - Investment Bank segment reported net revenues of €3.4 billion ($3.8 billion), up 10.3% year over year, driven by growth in Fixed Income and Currencies, and Equity Origination & Advisory [4] - Private Bank net revenues increased to €2.4 billion ($2.8 billion), up 2.7% year over year [5] - Asset Management saw net revenues rise by 18.3% to €730 million ($830.4 million), attributed to higher performance and transaction fees [5] - Corporate & Other segment reported net revenues of €127 million ($144.5 million), a significant improvement from negative $139 million in the prior-year quarter [5] Capital Position - Common Equity Tier 1 capital ratio improved to 13.8% as of March 31, 2025, up from 13.4% a year ago [6] - Leverage ratio on a fully loaded basis increased to 4.6%, compared to 4.5% in the previous year [6] Strategic Outlook - The company is expected to benefit from a strong balance sheet and a shift towards a capital-light business model, supporting its financials [7] - However, an elevated expense base may impact bottom-line growth [7]