Deutsche Bank reports first quarter 2015 net income of EUR 559 million 

Group results

• Income before income taxes (IBIT) of EUR 1.5 billion, a decrease of 12% from 1Q2014
• Core Bank IBIT, which excludes the Non-Core Operations Unit (NCOU), of EUR 1.9 billion, down EUR 360 million from the prior year period
• Net revenues of EUR 10.4 billion, up 24% year over year reflecting a strong performance across businesses and a favourable impact of foreign exchange (foreign exchange) movements
• Noninterest expenses of EUR 8.7 billion, up 34% from 1Q2014
• Litigation expenses of EUR 1.5 billion in 1Q2015. Litigation reserves were EUR 4.8 billion at quarter end
• Adjusted cost base of EUR 6.7 billion, up 12% from 1Q2014 reflecting higher costs for bank levy and the impact of foreign exchange movements
• Net income of EUR 559 million; post-tax return on average active equity (RoE) in 1Q2015 of 3.1% for the Group and 5.1% for the Core Bank

Capital and leverage

Common Equity Tier 1 (CET1) ratio of 11.1% on a fully loaded Capital Requirements Regulation (CRR)/Capital Requirements Directive 4 (CRD4) basis at quarter end, down 60bps from year end 2014
Fully loaded CRR/CRD4 CET1 capital of EUR 47.8 billion, up 4% from year-end 2014
Risk-weighted assets (RWA) on a fully loaded CRR/CRD4 basis of EUR 431 billion, up 9% from 4Q2014
CRD4 fully loaded leverage ratio of 3.4%, down 10bps from year end 2014
Tangible Book Value per share of EUR 41.26 increased 7.1% compared to 4Q2014
Deutsche Bank (XETRA: DBKGn.DE / NYSE: DB) today reported results for 1Q2015. Group net revenues rose 24% from the prior year, to EUR 10.4 billion with noninterest expenses 34% higher at EUR 8.7 billion. Income before income taxes was EUR 1.5 billion in 1Q2015, compared to EUR 1.7 billion in 1Q2014. The current quarter includes litigation costs of EUR 1.5 billion.

Jürgen Fitschen and Anshu Jain, Co-Chief Executive Officers, said: “In the first quarter 2015, revenues were close to record levels, reflecting the strength of our franchise across all our core businesses. Profits were impacted by litigation expenses of EUR 1.5 billion, primarily reflecting the bank’s definitive settlement with US and UK authorities relating to interbank offered rates (IBOR) and bank levy charges of EUR 561 million.”

They continued: “Core Bank adjusted IBIT of EUR 3.5 billion was the best since we launched Strategy 2015+ in 2012, reflecting both revenue strength and discipline in our adjusted cost base. In CB&S, Debt Sales & Trading revenues were the best since eight quarters and Equity Sales & Trading revenues the best since 2008, driven by strong client activity, robust markets and a normalization of market volatility after recent historic lows. Both PBC and GTB overcame the challenge of persistent low interest rates to achieve near record quarterly profits. Deutsche AWM grew revenues significantly, increased pre-tax profits by 75% year-on-year, and attracted EUR 17 billion of net new money inflows.”

They concluded: “These results provide a snapshot of a Deutsche Bank which is much stronger than when we began our journey in 2012. We have delivered robust operating performance despite tight resource discipline and significant investments in regulatory compliance. We have significantly strengthened our capital position. We embark on the next phase of our strategy from a position of strength.”

Source: Deutsche Bank – Deutsche Bank reports first quarter 2015 net income of EUR 559 million

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