Deutsche Bank posts record quarterly profit under CEO Sewing despite economic risks
Deutsche Bank's Financial Performance and Outlook
By Tom Sims and Jörn Poltz
Record Profit Achieved Amid Economic Uncertainties
FRANKFURT, April 29 (Reuters) - Deutsche Bank posted its largest-ever profit under CEO Christian Sewing on Wednesday despite higher credit risk provisions and negative currency impacts.
Upgraded Investment Bank Revenue Outlook
The lender also upgraded its outlook for revenue at the investment bank for 2026, expecting revenue to be higher rather than just slightly higher.
Quarterly Profit Surpasses Expectations
Deutsche, Germany's largest lender, recorded net profit attributable to shareholders of 1.912 billion euros ($2.22 billion) in the quarter, up from a profit of 1.775 billion euros a year earlier. It was better than analysts' expectations for a profit of 1.768 billion euros.
CEO's Remarks on Geopolitical Challenges
"This achievement is even more remarkable given the increasingly uncertain geopolitical environment since the beginning of the year, especially the conflict in the Middle East," Sewing said in a message to staff.
Industry Context and Economic Risks
Deutsche Bank is one of a flurry of European banks reporting earnings this week.
Challenges in the New Three-Year Period
The quarter - the first in a new three-year period in which Deutsche has pledged to meet more ambitious profitability and cost targets - comes as the war in Iran disrupts the economy and markets, and as fears around the health of private credit rattle investors.
Analysts' Warnings on Rising Risks
Analysts at Standard & Poor's last week warned that risks for European banks are rising, citing higher inflation, slower growth, market turbulence, and exposure to vulnerable corporate sectors including chemicals.
Credit Loss Provisions and Macroeconomic Uncertainties
Deutsche Bank recorded provisions for credit losses of 519 million euros, up from 471 million euros a year ago and higher than analysts' expectations for 447 million euros.
Bank's Statement on Provisions
The bank said provisions include an overlay "reflecting macroeconomic uncertainties".
($1 = 0.8544 euros)
(Reporting by Tom Sims and Joern Poltz, editing by Kirsti Knolle and Mrigank Dhaniwala)
