Updated from 2:21 a.m. EDT

Deutsche Bank ( DB) reported first-quarter earnings of 1.2 billion euros ($1.56 billion), a swing from a year-earlier loss of 141 million euros.

Revenue in the first quarter was 7.2 billion euros, after taking legacy-related charges of 1.5 billion euros. Revenue a year earlier was 4.6 billion euros

In a statement Monday, Germany's biggest bank said its Tier 1 capital ratio was 10.2%, above its stated target of 10%.

The earnings report comes a day after the bank said its CEO, Josef Ackermann, accepted an extension to his contract and will remain with the bank for another three years.

The new agreement, which is to be formally settled after the board meets on July 28, will run until 2013. Ackermann had insisted that he would quit the post when his current contract runs out in 2010.

"This was a key quarter for Deutsche Bank. Once again we demonstrated our strength, as we have consistently throughout this crisis," Ackermann said Tuesday in a statement.

"But in this quarter, we also proved our earnings power," he said. "We have consistently delivered capital strength and balance sheet discipline, and sustained a healthy liquidity and funding position."

Ackermann said the company sees continued challenges for 2009, but didn't offer a more detailed outlook.

The first-quarter profit compared with a huge 4.8 billion euros net loss in last year's fourth quarter, which was blamed largely on big trading losses. That helped push Deutsche Bank to a full-year loss of 3.9 billion euros.

For the first quarter, Deutsche Bank reported a more than threefold increase in corporate and investment banking revenues to 4.9 billion euros from 1.5 billion euros in the first quarter of 2008.

The corporate banking and securities division saw revenue rise to 4.2 billion from 880 million euros. The division saw strong year-on-year growth in sales and trading of debt and in so-called flow products, including foreign exchange, money market and interest rate trading. Those products contributed 3.8 billion euros to the division's revenues.

The bank's asset and wealth management division's revenue fell 49% to 515 million euros from abour 1 billion euros a year earlier.
Copyright 2008 TheStreet.com Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. AP contributed to this report.

If you liked this article you might like

Commerzbank Tops German DAX on Report of Merger Interest From Italy's UniCredit

Wall Street Looks Past Fed's $4.5 Trillion Balance Sheet for These Signals

All Eyes on the Godfather of Central Banking as Fed Has Huge Meeting This Week

Stock Observations; Reviewing Equities: Doug Kass' Views

Morgan Stanley Is Using Snapchat to Recruit College Students and Make Them Rich