Deutsche Bank Tops Earnings Estimates in First Quarter as Credit Provisions Fall

Deutsche Bank (DB) posted slightly better-than-expected first quarter profits, although revenues slipped, as the Germany's biggest lender attempts to put its litigation and capital raising risks behind it.

Deutsche Bank said pre-tax profits for the first three months of the year were marked at €878 million, modestly ahead of the consensus forecast of €868 million but a significant swing from the €2.4 billion loss recorded over the same period last year. Revenues for the quarter grew 4.4% to €7.346 billion, the bank said, missing analysts' forecasts of an €8.1 billion tally. Net income was pegged at €575 million, again beating the €522 million estimate

"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."

Deutsche Bank shares closed at €17.34 each in Frankfurt Wednesday after rising 2.36% on the session, extending their year-to-date advance to 12.6% compared to an 8.8% increase for the Stoxx Europe 600 Banks index.