Deutsche Bank reported its highest quarterly net profits since 2013, up 18% YoY at €1.2bn ($1.3bn). Its net revenues were up 1% to €7.3bn ($7.7bn). Investment Banking revenues were up 7% to €3.3bn ($3.5bn), led by Fixed Income & Currencies (FIC) revenues rising 15% and helping drive profits higher and offsetting a 28% decline in Origination & Advisory revenues. Private Bank net revenues were €2.2bn ($2.3bn), up 2%, and Corporate Bank net revenues were €1.5bn ($1.6bn), up 11%. Provision for credit losses were at €292mn ($307mn) in the quarter, up from €69mn ($72.5mn) in the previous year’s first quarter mainly due to provisioning for Stage 1 and 2 loans. Regarding exposure to Russia, Deutsche Bank said that it reduced its credit exposures – gross loan exposure was cut by 5%, net loan exposure decreased 21% and additional contingent risk was reduced by 35%. The bank’s CET1 ratio was at 12.8%, down 40bp QoQ and 90bp YoY. The CET1 ratio is just 30bp above its minimum target of 12.5%. This was primarily due to a 10% increase in risk weighted assets (RWAs) over the past year.
Deutsche’s USD 6% Perp was down 0.94 points to 94.25, yielding 7.96%.