Profits before tax soar by 10% year-over-year to an impressive €2.0 billion in the initial quarter of 2024, according to our site's latest report.
Deutsche Bank Delivers Solid Q1 Performance
Deutsche Bank has reported a strong start to the year, with moderate revenue growth, stable cost management, and controlled expenses according to its Q1 2024 financial results.
The bank's revenue grew by 6% year-on-year to €16.3 billion for the first half of 2024, indicating steady top-line growth in early 2024. The cost/income ratio remained stable, with adjusted costs flat year-on-year at about €10.1 billion. Noninterest expenses were €10.2 billion, down 15% year-on-year, mainly due to the absence of a prior-year litigation provision.
Broad-based revenue growth across business units and strong contributions from investment banking were key factors in the bank's positive performance. Ongoing cost discipline helped keep expenses stable despite growth efforts.
Financial highlights of Q1 2024 also include a Liquidity Coverage Ratio of 136%, a Common Equity Tier 1 (CET1) capital ratio of 13.4%, and a Net Stable Funding Ratio of 123%, with surpluses of €58 billion, €112 billion, and €13 billion respectively above required levels.
Deutsche Bank's commitment to sustainability is evident in its cumulative ESG-related financing and investment volumes since January 1, 2020 reaching €300 billion in Q1 2024. The bank participated in a €4.4 billion non-recourse project financing for Automotive Cells Company in the first quarter, and published its revised Sustainable Finance Framework.
The bank's efforts in sustainability were recognised with a rating upgrade from the non-profit rating agency CDP in Q1 2024.
Looking ahead, Deutsche Bank plans to link parts of Management Board compensation for 2024 to the carbon emission sectoral targets for the corporate loan portfolio at its 2024 Annual General Meeting. A fixed income investor call will take place on April 26, 2024, at 15:00 CEST, and an analyst call to discuss first-quarter 2024 financial results will take place at 11:00 CEST today.
Customer deposits rose by €13 billion to €635 billion during the first quarter of 2024, and High Quality Liquid Assets stood at €222 billion at the end of the quarter. Provisions for credit losses in Q1 2024 were €439 million, down from €488 million in the fourth quarter of 2023. Net releases of performing (Stage 1 and 2) loans in the first quarter were €32 million, compared to provisions of €30 million in the previous quarter.
The bank's Management Board and Supervisory Board have proposed the payment of a cash dividend of €0.45 per share in respect of the financial year 2023.
[1] Source: Deutsche Bank's Q1 2024 Earnings Presentation and Press Release [3] Source: Financial Times, Deutsche Bank Q1 2024 Results Show Improved Profitability, 2024-04-26
- Deutsche Bank's investment banking division contributed significantly to its strong Q1 2024 performance, as indicated by the broad-based revenue growth across business units.
- Beyond traditional finance, Deutsche Bank has emphasized sustainability, with cumulative ESG-related financing and investment volumes reaching €300 billion in Q1 2024.
- For personal-finance management, Deutsche Bank offers a range of services, including asset management and wealth management, as demonstrated by its strong Q1 2024 results.
- To further solidify its commitment to sustainability, Deutsche Bank plans to link portions of its Management Board compensation for 2024 to the carbon emission sectoral targets for its corporate loan portfolio.
