Deutsche Bank says its roughly €32bn 2025 revenue target is 'in sight' after a stronger-than-expected first quarter. The lender posted profit attributable to shareholders of €1.8bn on net revenue of €8.5bn, with return on tangible equity rising to 11.9%. Management acknowledged about €130m of provisions tied to tariff-driven and weaker macroeconomic risks but emphasised that investment banking — which generated €3.36bn — helped drive the result.
Quarterly numbers and where they came from
In its earnings release, Deutsche Bank reported total net revenue of €8.5bn in the first quarter and profit attributable to shareholders of €1.8bn, up from €1.3bn a year earlier. Return on tangible equity rose to 11.9%, an increase of 3.1 percentage points year on year.
- Net revenue: €8.5bn
- Profit attributable to shareholders: €1.8bn (vs €1.3bn a year earlier)
- Return on tangible equity (ROTE): 11.9%
- Investment banking revenue: €3.36bn
- Sensitivity: a one percentage point GDP drop would add >€77m to expected credit losses
- 2025 economic assumptions published by management: Germany +0.3%, US +1.7%, China +4.5%
Investment banking provided the largest contribution to group revenue at €3.36bn, while corporate and private banking also added to performance. Management said costs and revenue both came in ahead of market expectations, with fee and trading income remaining substantial despite a volatile spring for markets.
Tariffs, provisions and management tone
Executives used the results call to push back against fears that higher US tariffs would blow a hole in the bank's performance. Christian Sewing, chief executive, said many parts of the business were either unaffected by recent tariff moves or could benefit over time, while warning that geopolitical uncertainty is likely to remain elevated.
The bank nonetheless booked about €130m of provisions for loans it judged to be at higher risk of default. James von Moltke, chief financial officer, said those provisions were tied to weaker macroeconomic forecasts and overlays and included direct tariff-driven impacts on some higher-risk clients. Management described this language as cautious, signalling pockets of exposure while emphasising active monitoring of the issue. The cost-to-income ratio target remains under 65% as part of the plan to lift returns.
Targets and the message to markets
Deutsche Bank reiterated its medium-term financial goals, including roughly €32bn of revenue for 2025 and a return on tangible equity above 10%. Sewing described those targets as now "in sight." Analysts welcomed the first-quarter jump in ROTE and the outperformance on costs and revenues, while noting that tariff risk and the macro backdrop add uncertainty to execution.
Where the pressure points are
The most direct pressure comes through credit risk and the potential for weaker client activity. The bank's published sensitivity — more than €77m of extra expected credit losses per one percentage point of GDP slowdown — gives a sense of the potential scale of losses if growth slows and trade friction persists.
Related Articles
- FTSE futures dip as pound weakens ahead of BP, Barclays
- GM Q1 preview: Wall Street sees $2.62 EPS, $43.7bn revenue
- Mirova exits Philippine debt after flood-control bribery probe
'These targets are now in sight,' Christian Sewing, chief executive, said.
This article was created with AI assistance.
