DEUTSCHE Bank joined the list of lenders hit by weak bond market profits in the first quarter, the lender said yesterday as it reported a fall in profits.
However, markets welcomed the earnings numbers as they were less bad than investors had feared.
Pre-tax profits came in at €1.7bn (£1.4bn) for the three-month period, down 30 per cent on the first quarter of 2013.
Revenues fell 11 per cent to €8.4bn, with corporate banking and securities income down 22 per cent to €1.5bn.
Its asset and wealth management arm was another weak spot, with incomes before interest and tax slumping 23 per cent.
However, global transactions banking income increased 15 per cent on the year to €367m on lower loan losses.
The bank’s costs fell by just two per cent to €6.47bn.
Its headcount fell two per cent on the year to 97,184 staff, while compensation to workers fell six per cent to €3.35bn.
As pay fell by less than revenues, Deutsche’s compensation ratio increased by 2.1 percentage points on the year to 39.9 per cent.
On a Basel III basis the bank’s core tier one capital ratio came in at 9.5 per cent. But co-chief executive Anshu Jain told investors the bank could raise more capital if regulators deem it necessary in the coming months.
One positive surprise was that the bank did not increase its provisions for legal bills.
The bank’s shares rose 2.1 per cent on the day.