Deutsche Bank posts record quarterly profit despite economic risks

[FRANKFURT] Deutsche Bank posted its largest profit under CEO Christian Sewing on Wednesday (Apr 29), despite higher credit risk provisions and negative currency impacts.

The lender also upgraded its outlook for revenue at the investment bank for 2026, expecting it to be higher rather than just slightly higher.

Germany’s largest lender recorded net profit attributable to shareholders of 1.91 billion euros (S$2.9 billion) in the quarter, up from 1.78 billion euros the year before. It beat analysts’ expectations of a profit of 1.77 billion euros.

“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.

Deutsche Bank is one of a flurry of European banks reporting earnings this week.

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 Iran war disrupts the economy and markets, and as fears around the health of private credit rattle investors.

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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.

Deutsche Bank recorded provisions for credit losses of 519 million euros, up from 471 million euros the year before and higher than analysts’ expectations of 447 million euros.

The bank said that provisions included an overlay “reflecting macroeconomic uncertainties”. REUTERS