Deutsche Bank has a strong start to the year: profits increased by 10 percent

Deutsche Bank has a strong start to the year: profits increased by 10 percent

Deutsche Bank started the year with an increase in profits. This increase was achieved through lower costs and a significant increase in revenues in the investment bank. Pre-tax profit rose 10 percent to 2.04 billion euros, while profit attributable to shareholders also rose 10 percent to 1.28 billion euros. Revenues recorded a slight increase of 1 percent to a total of 7.8 billion euros. The investment bank grew by 13 percent and was able to compensate for the decline in income in the private customer and corporate bank, which had to contend with weaker net interest income.

During an analyst conference, the price of Deutsche Bank shares reached a new high in the afternoon, the highest since the beginning of 2018, and passed the 16 euro mark. This corresponded to an increase of 8.18 percent to 16.66 euros. Analysts praised the strong performance in investment banking, pointing out that revenues were higher and costs and provisions for loan losses were lower than expected.

The savings efforts and the bubbling earnings in the capital market business brought Deutsche Bank a billion-dollar profit at the start of the year. The company is also preparing for possible setbacks in the commercial real estate market and as a result of the IT breakdowns at Postbank. However, management is confident that these challenges will ease as the year progresses.