Deutsche Bank (DB - Get Report) posted slightly better-than-expected first quarter profits, although revenues slipped, as the Germany's biggest lender attempts to put its litigation and capital raising risks behind it.
Deutsche Bank said pre-tax profits for the first three months of the year were marked at €878 million, modestly ahead of the consensus forecast of €868 million but a significant swing from the €2.4 billion loss recorded over the same period last year. Revenues for the quarter grew 4.4% to €7.346 billion, the bank said, missing analysts' forecasts of an €8.1 billion tally. Net income was pegged at €575 million, again beating the €522 million estimate
"I am pleased with the start we have made to 2017. Client engagement is strong, asset flows are returning across the bank and activity is picking up. Our cost-cutting efforts are starting to pay off, while we have reduced complexity significantly. We have laid firm foundations upon which Deutsche Bank can once again deliver good results."
Deutsche Bank said credit provisions fell 56% from the same period last year to €133 million and non-interest expenses fell 12% to €6.3 billion.
The group's global markets division generated revenues of €2.6 billion, the bank said, while debt sales and trading saw an 115 increase from the first quarter of 2016, taking the the tally to €2.29 billion thanks to "an improved market environment," Deutsche Bank said. "Revenues were solid across most businesses, particularly in Rates and Credit."
Deutsche Bank shares fell 3.4% in the opening 30 minutes of trading in Frankfurt to change hands at €16.75 each, trimming their three month advance to 12.8% compared to an 3.8% increase for the Stoxx Europe 600 Banks index over the same period.