Deutsche Bank swings to Q1 profit on investment bank strength

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FRANKFURT (Reuters) – Deutsche Bank (DE:DBKGn) swung to better-than-expected net profit in the first quarter of 2021 as strength at the investment bank helped offset the headwinds of an ongoing restructuring program and the coronavirus pandemic.

Deutsche painted a rosier look for 2021, saying it now expects revenues to be “essentially flat,” compared with a previous estimate of “marginally lower”.

The German lender said on Wednesday that its first-quarter net profit attributable to shareholders was 908 million euros ($1.10 billion), which compares with a year-earlier loss of 43 million euros. Analysts had expected a profit of almost 600 million euros.

It was the strongest quarter for Deutsche since the first quarter of 2014, as revenue at its fixed-income trading business and origination and advisory services surged, trends that have also lifted profits of competing banks.

(GRAPHIC: Deutsche Bank quarterly results – https://graphics.reuters.com/DEUTSCHEBANK-RESULTS/rlgvdzzmwvo/chart.png)

“These results give us confidence that we’ll reach our 2022 targets,” Chief Executive Officer Christian Sewing said.

($1 = 0.8282 euros)

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