Deutsche Bank says might temporarily miss capital target

[BERLIN] Deutsche Bank announced first-quarter results it said were above market expectations late on Sunday, but warned it might temporarily miss its capital requirement target due to the impact of the Covid-19 pandemic.

In an unscheduled statement, Deutsche Bank said it expected to report quarterly net income of 66 million euros (S$101.7 million) on revenues of 6.4 billion euros, with provisions for credit losses of 500 million euros. It said it would give full details as planned on April 29.

It said it was possible that the bank would fall "modestly and temporarily" below its previous common equity tier 1 (CET 1) target of at least 12.5 per cent due to the current global recession sparked by the coronavirus. The ratio was 12.8 per cent at the end of the first quarter.

"Deutsche Bank remains committed to maintaining a significant buffer above its regulatory requirements at all times," it said.

REUTERS