Deutsche Bank reports first-quarter 2017 net income of € 575 million

The FINANCIAL — John Cryan, Chief Executive Officer, 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.”

Profitability

Pre-tax profit of € 878 million, up 52% year-on-year

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Net income of € 575 million, up 143% year-on-year

Revenues

€ 7.3 billion, down 9% year-on-year

The decline was predominantly due to a negative swing of € 0.7 billion year-on-year resulting mainly from the development of Deutsche Bank’s credit spreads

Adjusted for this effect, revenues would have been broadly flat year-on-year

Provision for credit losses

€ 133 million, down 56% year on year, primarily due to improved performance in the metals and mining and oil and gas portfolios

Costs

Noninterest expenses of € 6.3 billion, down 12% year-on-year

Adjusted costs of € 6.3 billion, down 5% year-on-year, reflecting restructuring progress and closure of Non-Core Operations Unit (NCOU) at the end of 2016

Headcount reduced by ~1,600 during the quarter, despite internalisation of ~200 external staff

Headcount reduced by ~3,300 versus the end of the first quarter of 2016 despite internalisation of ~1,900 external staff in the COO function and ~370 net hires in Compliance and Anti-Financial Crime

Branch optimisation: 130 out of planned 188 branch closures in Germany now complete. All eight advisory centres are now up and running

Capital

Fully loaded CRD 4 Common Equity Tier 1 (CET1) ratio of 11.9%, slightly up versus 31 December 2016

Impact of capital raising: pro-forma fully loaded CET1 ratio of 14.1% at 31 March 2017

Risk Weighted Assets (RWA), fully loaded, of € 358 billion, stable since year-end. CRD 4 leverage exposures of € 1,369 billion, up 2% versus 31 December 2016, reflecting a return of client activity

Net money inflows across asset-gathering businesses

Deutsche Asset Management: € 5 billion of net new money across most regions and products

Private, Wealth & Commercial Clients: € 3 billion of net new money with inflows in both Wealth Management and Private & Commercial Clients