Deutsche Bank today announced a 7% year-on-year increase in profit before tax to EUR3.0 billion ($3.5 billion) for the first quarter of 2026. Post-tax profit rose 8% year on year to a quarterly record of EUR2.2 billion ($2.6 billion). Diluted earnings per share rose 7% year on year to EUR1.06 ($1.24). "This quarter's record profit gives us a great start on the next phase of our strategy. We delivered business growth in focus areas and funded investments through operating efficiencies. We also maintained our strong capital base while simultaneously committing to raise rewards for shareholders. We have the balance sheet strength, the capabilities and the strategic positioning to serve our clients globally in a dynamic environment. The three strategic levers of focused growth, scalable operating model and disciplined capital management support our ability to deliver long-term value for shareholders and our ambition to be the European Champion," said Christian Sewing, chief executive officer. Delivering on targets with further strengthening of key ratios 12.7% post-tax return on tangible equity (RoTE), up from 11.9% in Q1 2025 58.9% cost/income ratio, down from 61.2% in the prior year quarter Post-tax RoTE near or above 13% in all four businesses Strong client activity in the quarter Net revenues of EUR8.7 billion ($10.2 billion), driven by focused growth areas Assets under management (AuM) rise to EUR1.8 trillion ($2.1 trillion) including net inflows of EUR22 billion ($25.7 billion) Costs reflect disciplined strategy execution Noninterest expenses of EUR5.1 billion ($6.0 billion), down 2% year on year, with business growth and incremental investments largely self-funded by operating efficiencies Incremental investments, volume growth and inflation of EUR0.2 billion ($234 million) Operational efficiencies of EUR0.1 billion ($117 million) Overall credit portfolio quality remains strong, in line with expectations Provision for credit losses of EUR519 million ($607 million), 43 bps of average loans Provisions include overlay reflecting macro-economic uncertainties Private credit: no losses, well diversified and strong underwriting standards Capital strength supports business growth and increased payouts to shareholders Common Equity Tier 1 capital ratio of 13.8%, within target operating range of 13.5–14.0% Strong organic capital generation supports tangible business growth and deductions for shareholder distributions increased in line with 60% payout ratio Previously-announced EUR1 billion ($1.2 billion) share buyback underway Group results at a glance Three months ended (in EUR m unless stated otherwise) Net revenues: 8,671 (Mar 31, 2026) vs 8,524 (Mar 31, 2025); +2% YoY Provision for credit losses: 519 vs 471; +10% YoY Noninterest expenses: 5,111 vs 5,216; -2% YoY Profit (loss) before tax: 3,041 vs 2,837; +7% YoY Profit (loss): 2,174 vs 2,012; +8% YoY Post-tax return on average tangible shareholders' equity: 12.7% vs 11.9%; +0.8ppt YoY Post-tax return on average shareholders' equity: 11.4% vs 10.6%; +0.8ppt YoY Cost/income ratio: 58.9% vs 61.2%; (2.2)ppt YoY Common Equity Tier 1 capital ratio: 13.8% vs 13.8%; (0.0)ppt YoY Raja Akram, chief financial officer, added: "We delivered strong performance in the quarter, with RoTE of 12.7% and cost/income ratio below 59%, through a high-quality earnings mix and durable growth. Total AuM in the Private Bank and Asset Management grew to EUR1.8 trillion ($2.1 trillion), supported by EUR22 billion ($25.7 billion) in net inflows. Our Investment Bank served as a valued advisor to clients in a challenging macro-economic environment and our Corporate Bank's lending activity accelerated. This gives us a firm step-off point towards our financial targets and strategic objectives. We're building growth momentum in high value businesses through targeted investments and deliberate capital allocation, and further cost flexibility through AI and process reengineering across the bank." Scaling the Global Hausbank: progress during the quarter Focused growth: Group revenues up 2%, up 6% ex-FX AuM of EUR1.8 trillion ($2.1 trillion), up EUR146 billion ($170.8 billion) over Q1 2025, including net inflows of EUR22 billion ($25.7 billion) across Private Bank and Asset Management in Q1 2026 Private Bank: 5% revenue growth and growth in client assets of EUR30 billion ($35.1 billion) Asset Management: 10% revenue growth and EUR11 billion ($12.9 billion) net inflows Corporate Bank: loan growth of EUR7 billion ($8.2 billion) over prior year quarter Investment Bank: FIC Financing revenues up 7% over a strong prior year quarter Strict capital discipline: CET1 ratio of 13.8%, within target operating range, after business-driven RWA growth and deductions for distributions in line with a payout ratio raised to 60% from 2026 Positive shareholder value add (SVA) driven by strong earnings and disciplined capital allocation Portfolio actions include continued reduction of sub-hurdle mortgages and reallocation of resources toward Wealth Management and within corporate lending Scalable operating model: Group noninterest expenses down 2%, up 2% ex-FX Incremental investments include ~80 coverage hires in Wealth Management, hiring in Investment Banking & Capital Markets and expansion of Corporate Bank solutions, largely offset by operational efficiencies from headcount and target operating model measures Private Bank: ~75% of planned 2026 branch closures completed Asset Management: additional focus on asset gathering through DWS's agreement to acquire 40% of Nippon Life India Alternative Investment Fund Corporate Bank/Investment Bank: AI accelerating corporate credit approval processes Investment Bank: announced an automated, scalable FX solution for clients through HausFX partnership with BlackRock Private Bank: pre-tax profit rises 39% with record revenues Record quarterly revenues as strong deposit revenues drive higher net interest income RoTE improves to 12.8% and cost/income ratio to 67%, reflecting disciplined execution of transformation strategy Client assets grow EUR30 billion ($35.1 billion) to EUR821 billion ($960.6 billion), driven partly by net inflows of EUR11 billion ($12.9 billion) including EUR10 billion ($11.7 billion) in investment products, reflecting progress on asset gathering strategy Noninterest expenses down 1% reflecting sustained cost discipline, with continued targeted investments Lower provision for credit losses reflects improved portfolio quality Asset Management: 37% profit growth with higher Assets under Management Year-on-year improvement in profitability and key metrics driven by 10% revenue growth and 5% reduction in noninterest expenses Revenue growth reflects higher management fees due to higher average AuM and significantly higher performance & transaction fees from an infrastructure fund Noninterest expenses reduced due to sustained cost discipline and lower variable compensation AuM up EUR84 billion ($98.3 billion) year on year with further net inflows of EUR11 billion ($12.9 billion) during the quarter, predominantly in Passive products including Xtrackers Corporate Bank: sustained strong RoTE with loan and deposit growth RoTE rises to 14.8% and cost/income ratio remains strong at 63% Revenues down 3%, up 1% ex-FX; normalising margins offset higher revenues from interest hedging, higher volumes and growth of 1%, or 5% ex-FX, in net commission and fee income Year-on-year loan growth of EUR7 billion ($8.2 billion) or 6%, with strength in Trade Finance Year-on-year deposit growth of EUR6 billion ($7.0 billion) or 2%, with strong Cash Management sight deposits Noninterest expenses flat as positive FX effect and effective cost management offset volume growth and investments Lower provision for credit losses, despite macro-economic overlay, reflects solid underlying portfolio quality Investment Bank: revenues in line with strong prior year quarter Post-tax RoTE of 15.7% and cost/income ratio essentially stable year on year at 49% Revenues stable vs. a strong prior year quarter despite macro-economic and FX headwinds Revenues in Fixed Income & Currencies (FIC) of EUR2.9 billion ($3.4 billion), close to the record prior year quarter, with continued strength in FIC Financing and resilience in FIC Markets Investment Banking & Capital Markets revenues up 5% to EUR477 million ($558 million), driven by higher revenues in Debt & Equity Origination with strength in Investment Grade Debt Noninterest expenses flat year on year, with targeted investments and higher other expenses offset by positive FX effect Provision for credit losses significantly higher, driven by a single-name exposure and macro-economic overlay Outlook for 2026 Revenues: first-quarter performance in line with expectations, providing a solid step-off point for the bank's full-year 2026 revenue ambition of EUR33 billion ($38.6 billion) Costs: expenses expected to be in line with plan while investing and delivering operating efficiencies Provision for credit losses: strong overall asset quality and year-on-year improvement expected in a normalised environment Profitability: on track to deliver strong operating performance in 2026 Capital: current share repurchase programme underway; deductions from CET1 capital in line with raised payout ratio target of 60% Sustainable Finance: total volumes reach a cumulative EUR492 billion ($575.6 billion) since 2020 Sustainable and transition finance volumes ex-DWS were EUR21 billion ($24.6 billion) in the quarter, bringing the cumulative total since January 1, 2020 to EUR492 billion ($575.6 billion), up from EUR471 billion ($551.1 billion) at the end of 2025. Progress during the quarter included: Issuing Deutsche Bank's inaugural European Green Bond, raising EUR500 million ($585 million) exclusively to refinance EU Taxonomy-aligned assets within Deutsche Bank's Green Buildings portfolio Financing construction of the Netherlands' first dedicated sustainable aviation fuel (SAF) plant, enabling 97,500 tonnes per year of SAF production and 35,000 tonnes of sustainable by-products, with lifecycle emissions approximately 80% below fossil fuels. Deutsche Bank acted as mandated Lead Manager Jointly arranging the issuance of £546 million Commercial Mortgage-Backed Securitization (CMBS) under the issuer's Sustainable Securitized Bond Framework, enabling energy-efficient, affordable housing in the UK. Deutsche Bank acted as ESG Coordinator, Joint Arranger and Lead Manager Appointment as a member of the EU Platform on Sustainable Finance 26/27 to advise the European Commission on the further development of Sustainable Finance regulation Re-disseminated by The Asian Banker
