Deutsche Bank (DBK) Q1 2025 Fixed Income earnings summary

Executive summary

• Pre-provision profit rose 34% year-over-year to EUR 3.3bn, with revenue up 10% to EUR 8.5bn and post-tax RoTE at 11.9%.

• Cost/income ratio improved to 61.2%, below the 65% target, reflecting cost discipline and operational efficiencies.

• Strategic execution on track, with EUR 0.7bn of EUR 2bn targeted incremental revenue for 2025 already achieved.

• Capital return initiatives progressing, with EUR 2.1bn announced through dividends and buybacks, aiming for over EUR 8bn cumulative payout.

• CET1 ratio at 13.8%, supporting business growth and shareholder distributions.

Financial highlights

• Net income attributable to shareholders was EUR 2.0bn, up 39% year-over-year; diluted EPS at EUR 0.99, up 43%.

• Noninterest expenses declined 2% year-over-year to EUR 5.2bn, with adjusted costs at EUR 5.1bn.

• Provision for credit losses was EUR 471m (39bps of avg. loans), with overlays for macro/geopolitical risks.

• Loan book grew by EUR 4bn and deposits increased by EUR 6bn in Q1, both FX-adjusted.

• Liquidity coverage ratio at 134%, with EUR 231bn in HQLA and EUR 58bn surplus above requirements.

Outlook and guidance

• Full-year revenue goal of around EUR 32bn reaffirmed, with all business segments performing well.

• Cost/income ratio target below 65% and post-tax RoTE above 10% maintained for 2025.

• CET1 ratio expected to remain around 13%, with payout ratio of 50%.

• Provision for credit losses guidance maintained, with expectations for normalization but dependent on macro/geopolitical risks.

• Noninterest expenses expected to decline, driven by lower nonoperating costs; adjusted costs to remain flat.