Deutsche Bank (NYSE:DB) has posted its best quarterly results in seven years driven by strong investment banking activities.
The German lender reported a first-quarter net profit of $1.1 billion U.S. compared to a year-earlier loss of $51 million U.S. That beat the consensus expectations of analysts who foresaw a profit of $725 million U.S.
It was the strongest quarter for Deutsche since the first quarter of 2014, as revenue at its trading business and advisory services surged, trends that have also lifted profits at other banks.
Deutsche Bank said it now expects revenue to be essentially flat in 2021 compared with a previous estimate of marginally lower growth. The bank’s shares traded 6.6% higher in European trading following the quarterly results.
The better-than-expected profits come as good news for Deutsche Bank Chief Executive Officer Christian Sewing, who embarked on a restructuring plan two years ago that involved shedding 18,000 staff in an effort to return the bank to profitability.
Deutsche Bank managed to eke out a small profit for 2020, its first after five years of consecutive losses.
Deutsche Bank's trading business saw its revenue rise 34% in the first quarter of this year, growth that outpaced competing U.S. investment banks. Goldman Sachs (NYSE:GS) reported a 31% rise in trading during the first quarter, while JPMorgan’s rose 15%.
