Deutsche Bank reports € 1.9 billion profit before tax in the first quarter of 2023

Profit before tax up 12% year on year to € 1.9 billion, highest quarter since 2013

• Net profit up 8% to € 1.3 billion
• Post-tax return on average tangible shareholders’ equity (RoTE)¹ of 8.3% with post-tax return on average shareholders’ equity (RoE) of 7.4%
• Cost/income ratio of 71%, down from 73% in prior year quarter

Net revenues grow 5% to € 7.7 billion

• Highest quarter since 2016, despite business exits during transformation
• In line with bank’s revenue growth objectives through 2025
• Net inflows of € 12 billion across the Private Bank and Asset Management

Noninterest expenses up 1% year on year to € 5.5 billion

• Adjusted costs flat year on year at € 5.4 billion, with investments in business growth, technology and controls offset by lower bank levies
• Additional efficiency measures underway in front office and infrastructure

Capital, risk and liquidity metrics in line with objectives

• Common Equity Tier 1 (CET1) capital ratio rose to 13.6%, from 13.4% in the previous quarter
• Leverage ratio of 4.6%, in line with previous and prior year quarter
• Provision for credit losses of € 372 million, 30 basis points (bps) of average loans; 2023 guidance range of 25-30 bps of average loans reaffirmed
• Liquidity coverage ratio rises to 143%, a surplus of € 63 billion
• Net Stable Funding Ratio rises to 120%, a surplus of € 100 billion

Initiatives to accelerate Global Hausbank strategy announced

• Operational efficiency: incremental savings ambition raised from € 2.0 billion to € 2.5 billion through additional measures
• Capital efficiency: € 15-20 billion of RWA reductions in lower-yielding portfolios and from optimization, driving returns and shareholder distributions
• Revenue growth: targeted investments in technology, coverage footprint and advisory-focused businesses to tap additional revenue potential

Full press release