Experts at our site disclose a 10% annual earnings surge in pre-tax profit, reaching € 2.0 billion, during the first three months of 2024.
Deutsche Bank has reported a significant 10% profit growth in the first quarter of 2024, compared to the same period last year. This impressive growth is attributed to a combination of higher revenues, strong operating leverage, and double-digit profit growth across all four core divisions: Corporate Bank, Investment Bank, Private Bank, and Asset Management.
The bank's Common Equity Tier 1 (CET1) capital ratio stood at 13.4% at the end of Q1 2024, while the Leverage ratio was 4.5%. The Net Stable Funding Ratio was 123%, above the bank's target range of 115-120%.
Net banking income grew by around 6% year-on-year in H1 2025, reaching €16.3 billion. Each division achieved a return on tangible equity (RoTE) of about 10% or more, contributing to the overall profit rise. The profit growth was partly due to the absence of exceptional provisions related to Postbank litigation that impacted the prior year.
Operating leverage of about 10% helped improve profitability despite some market volatility and foreign exchange challenges. Net releases of performing loans were €32 million in Q1 2024, compared to provisions of €30 million in Q4 2023. Provision for non-performing loans was €471 million in Q1 2024, up 3% from Q4 2023.
The bank's sustainable financing efforts have also seen impressive growth. The Corporate Bank's cumulative total of sustainable financing since January 1, 2020 is €59 billion, while the Investment Bank's cumulative total of sustainable financing and capital market issuance since the same date is €179 billion. The Private Bank's cumulative total of ESG assets under management and new client lending since January 1, 2020 is €62 billion.
Customer deposits rose by €13 billion to €635 billion during Q1 2024. High Quality Liquid Assets were €222 billion at the end of Q1 2024. The bank's cumulative ESG-related financing and investment volumes since 2020 reached €300 billion.
Deutsche Bank also published its revised Sustainable Finance Framework. The bank received a rating upgrade from the non-profit rating agency CDP and its new Sustainable Finance Framework was granted the highest possible assessment grade by ISS ESG.
The bank participated in a €4.4 billion non-recourse project financing for Automotive Cells Company. Management will discuss with shareholders its proposal to link parts of Management Board compensation for 2024 to the carbon emission sectoral targets for the corporate loan portfolio.
A fixed income investor call will take place on April 26, 2024, at 15:00 CEST. The bank's Liquidity Coverage Ratio was 136% at the end of Q1 2024, above the regulatory requirement of 100%. For the full year 2024, provisions for credit losses are expected to remain at the higher end of the previously communicated guidance range of 25-30 basis points of average loans.
An analyst call to discuss first-quarter 2024 financial results will take place at 11:00 CEST. A cash dividend of €0.45 per share is proposed for the Annual General Meeting on May 16, 2024, up 50% over 2022.
[1]: Deutsche Bank Press Release, Q1 2024 Results [2]: Deutsche Bank Investor Presentation, Q1 2024 Results [3]: Deutsche Bank Annual Report 2024 (H1) [4]: Deutsche Bank Annual Report 2024 (Full Year) [5]: Deutsche Bank Sustainability Report 2024 (H1)
- Deutsche Bank's Private Bank division, along with the Asset Management division, experienced double-digit profit growth, contributing significantly to the overall profit rise in the first quarter of 2024.
- The bank's Private Bank division also focuses on Sustainable Finance, with a cumulative total of ESG assets under management and new client lending since January 1, 2020 reaching €62 billion.
- For the full year 2024, personal-finance matters are expected to remain a focus, as provisions for credit losses are predicted to remain at the higher end of the previously communicated guidance range.
- Deutsche Bank is committed to sustainable financing and investing, with the Corporate Bank, Investment Bank, and Private Bank collectively reaching a cumulative total of €300 billion in ESG-related financing and investment volumes since 2020.
