Deutsche Bank Q1 Profit Down; Revenue Up 24% - Quick Facts

(RTTNews) - Germany's biggest lender Deutsche Bank (DB) reported first quarter net income declined to EUR 559 million from EUR 1.1 billion in the prior year.

Profits were impacted by litigation expenses of EUR 1.5 billion, primarily reflecting the bank's definitive settlement with US and UK authorities relating to interbank offered rates (IBOR) and bank levy charges of EUR 561 million, stated, Co-Chief Executive Officers , Jürgen Fitschen and Anshu Jain.

Core Bank IBIT, which excludes the Non-Core Operations Unit or NCOU, was EUR 1.9 billion, down EUR 360 million from the prior year period.

Group net revenues rose by 24% to EUR 10.4 billion from EUR 8.4 billion a year ago, supported by favourable foreign exchange movements.

The company noted that revenue growth versus the prior year first quarter was principally driven by the 15% (EUR 612 million) growth in CB&S and 29% (EUR 314 million) growth in Deutsche AWM.

In NCOU, revenues of EUR 336 million were up EUR 273 million versus last year reflecting a specific litigation recovery and ongoing de-risking gains.

Friday, the company announced its decisions upon the next phase of its strategy, including plan to reduce leverage in Corporate Banking & Securities, deconsolidate Postbank, invest in its transaction banking, asset and wealth management, and retail businesses.