Deutsche Bank’s investment bank drives profit beat

Deutsche Bank AG said Wednesday that after-tax profit fell significantly in the first quarter, but the performance of its investment bank helped it beat expectations.

After-tax profit for the period was 66 million euros ($71.5 million) compared with EUR201 million a year earlier. Including noncontrolling interests and other components, the bank posted a loss attributable to shareholders of EUR43 million, compared with profit of EUR97 million a year earlier.

Revenue was flat at EUR6.35 billion. Investment-bank revenue rose 18% on year, with fixed-income revenue up 13%.

Germany’s largest bank had said late Sunday that it would beat analysts’ expectations and post an unexpected profit for the first three months of the year despite a sharp increase in provisions for credit losses. The news sent the stock soaring the following day. It has gained 17% so far this week and 7% in April.

“In the current crisis, we have shown robust numbers and demonstrated strong performance in support of our clients across all core businesses,” Chief Executive Christian Sewing said.

Pietro Lombardi

Source:marketwatch.com