The results of the Deutsche Bank reflect the trend of banks that benefited from volatility in the market caused by US tariffs.
The largest bank in Germany – Deutsche Bank – He has recorded the highest quarterly profit over the past 14 years, at the same time warning about the possible influence of American tariffs. The Financial Times reported this on Tuesday, April 29.
In the first quarter of 2025, the income before the tax rose 39% in the annual terms, reaching 2.8 billion euros, exceeding analysts by 7%.
Bank revenue has grown 10%, to the highest level for a decade, mainly thanks to the trade of bonds and money against the background of global volatility on the market. Costs were reduced by 2%, including due to the lower cost of the tests.
According to CEO Christian Zeving, the results show that the bank is “moving to fulfill all goals for 2025.”
The indicator of profitability for capital material is 11.9%, which has been 3 points more than last year and exceeds the target indicator of more than 10%.
The ratio of income costs improved at 61.2% against 68.2% last year and better than the target level of 65%.
The highest income was brought by a division for trading on instruments and money money – an increase of 17% in the annual terms. At the same time, income from residence and consulting has been reduced by 8% due to the writing of a position in the risk financing segment.
Despite the decline of reserves for problem loans by 27%, the total reserves for credit losses increased to 471 million euros, which is 16% more expected. The bank noted that 130 million euros falls into loans without delay, considering “geopolitical and macroeconomic uncertainty in the United States.”
“The shadow of a possible global trade war is still hanging on the markets,” Zevting said in contact with employees. – “And although we expect to avoid increasing, uncertainty and volatility will remain high.”
Remember that the European Commission is looking for ways to organize a joint response to customs tariffs on behalf of EU countries, in particular Germany.
Earlier, Frederick Mertz called for quick actions to ensure German’s competitiveness against the back of the stock markets after US President Donald Trump’s announcement of new duties.
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Source: korrespondent
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