Germany’s largest lender Deutsche Bank AG yesterday reported its best quarterly profit for seven years, thanks to savings generated by restructuring and a good performance by its investment arm.
First-quarter profits were 908 million euros (US$1.10 billion), while global revenues, at 7.2 billion euros, were up 14 percent year-on-year, the lender said, exceeding analysts’ expectations.
The best contribution came from the investment banking division, where revenues jumped 32 percent year-on-year.
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The profitability of other divisions — retail and corporate banking, asset management — also rose, in part thanks to strict discipline on costs.
“This result was driven by revenue growth, a substantial reduction in provision for credit losses, and lower adjusted costs year on year,” the company said in a statement.
“While we can look back on an excellent quarter, the outlook is also encouraging,” Deutsche Bank CEO Christian Sewing said in a letter to employees.
This year’s revenue would be close to last year’s level, which was a strong year, he said.
“Moreover, the past few months have shown that we are benefiting from a number of global economic trends, including ongoing high corporate and sovereign financing demands, and the growing importance of sustainability,” Sewing said.
Separately, Lloyds Banking Group PLC, the UK’s largest mortgage lender, yesterday announced a surge in net profit last quarter on lower-than-expected credit losses and economic recovery in the wake of the COVID-19 pandemic.
Profit after tax grew to £1.4 billion (US$1.9 billion), “supported by business momentum and a release of expected credit loss provisions, given the improved economic outlook,” Lloyds said in a statement.
Lloyds depends on Britain’s economic performance as retail banking is its core business.
“The coronavirus pandemic continues to have a significant impact on people, businesses and communities in the UK and around the world,” Lloyds chief executive officer Antonio Horta-Osorio said. “Whilst we are seeing positive signs, notably the progress of the vaccine rollout and the emergence from lockdown restrictions, the outlook remains uncertain.”
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