Deutsche Bank (ETR:DBKGn) posted higher first-quarter revenue and profit on Tuesday, exceeding analysts’ expectations and affirming confidence in its full-year targets.
Net profit rose to 1.775 billion euros ($2.03 billion) from 1.275 billion euros a year earlier, while after-tax profit increased 39% to 2.01 billion euros.
Revenue grew 10% to 8.52 billion euros, supported by gains in the investment bank, private bank, and asset management businesses, which offset a decline in the corporate bank division.
Analysts had projected an after-tax profit of 1.84 billion euros and revenue of 8.30 billion euros, based on consensus estimates provided by the bank.
CEO Christian Sewing said the results position Deutsche Bank to meet its 2025 goals.
While Deutsche Bank reaffirmed its 2025 targets, it warned about potential risks from tariffs. This led to higher Stage 1 and Stage 2 provisions, causing loan losses to come in slightly above consensus. There is also a possibility that full-year 2025 consensus estimates for provisions may be too low.
Deutsche Bank reiterated its plans to assess additional buybacks throughout the year, which analysts at RBC Capital Markets find "reassuring."
"DBK is delivering on what it can control in Q1 but the impact of tariffs adds uncertainty to DBK’s outlook statement which is only realistic," they added.
