Restructuring Deutsche Bank shows best quarter in 7 years
FRANKFURT, Germany (AP) — Deutsche Bank saw its strongest quarterly profits in seven years as the bank's long-running restructuring showed in lower costs and as it suffered fewer loan losses due to an improving economic outlook as growth slowly rebounds from the pandemic.
Profit attributable to shareholders was 908 million euros ($1.1 billion) in the first three months of the year compared with a loss of 43 million euros in the year-earlier period. Top-line revenues rose 14 percent to 7.23 billion euros.
Among the factors contributing to the improved result was releasing money that had been set aside to cover loans that aren't expected to be repaid. Provisions for credit losses fell 86% to only 69 million euros in the first quarter, down from 506 million euros in the year-ago period reflecting what the bank said was “an improved macroeconomic outlook.”
The bank said Wednesday it had reduced its cost base for 13 straight quarters and cut its internal workforce to 84,400, down by 2,300 from a year ago.
The bank said pre-tax profit of 1.6 billion euros was the best quarterly group profit since the first quarter of 2014. “Our first quarter is further evidence that Deutsche Bank is on the right path in all four core businesses, and is building sustainable profitability,” CEO Christian Sewing said in a statement.