Deutsche Bank more than doubles its profit for the first quarter to €575m

 
Rebecca Smith
Deutsche said yesterday it was considering moving 4,000 of its staff away from the UK
Deutsche said yesterday it was considering moving 4,000 of its staff away from the UK (Source: Getty)

Deutsche Bank has announced its net profit more than doubled for the first quarter of the year to €575m (£487m).

Read more: Up to 4,000 Deutsche Bank jobs could be moved from London after Brexit

The figures

Increasing job cuts along with falling costs have led to Germany's biggest bank posting a net profit of €575m, up from €236m in the same period for the year before.

Pre-tax profit was up 52 per cent to €​878m.

However, revenues fell nine per cent to €7.3bn, with the bank citing a negative swing of €0.7bn from the development of its credit spreads.

Deutsche Bank said its costs were down five per cent and that it has reduced headcount by 1,600 during the first three months of the year. That has fallen by 3,300 since the first quarter of last year.

Its core capital ratio was 11.9 per cent at the end of the quarter, but when taking into account the capital increase which finished at the beginning of April, Deutsche's capital ratio hit 14.1 per cent.

Why it's interesting

The bank dropped some big news yesterday when it revealed it's mulling over moving 4,000 of its 9,000 staff out of the UK, because of Brexit, as many wait for concrete news of what Britain leaving the European Union will mean for the City and further afield.

It was announced last month that the bank was slashing its bonus pool by 77 per cent after reporting losses of €1.4bn for 2016. Despite that, one in 20 staff is eligible to share in a handout from a €1.1bn pot.

What the company said

John Cryan, Deutsche's chief executive, said: "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.

Read more: One in 20 Deutsche Bank staff to share €1.1bn pay bonanza

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