Finance
Deutsche Bank (DBK) Q1 earnings 2025
A sign for Deutsche Bank AG at a bank branch in the financial district of Frankfurt, Germany, on Thursday, Feb. 2, 2023.
Bloomberg | Bloomberg | Getty Images
Germany’s largest lender Deutsche Bank on Tuesday posted higher-than-expected first-quarter profit as lenders in Europe’s largest economy navigate broader market turbulence instigated by U.S. tariff policies.
Net profit attributable to shareholders reached 1.775 billion euros ($2.019 billion) in the first quarter, up 39% year-on-year and above analyst expectations of around 1.64 billion euros, according to a Reuters poll. The bank reported profit of 106 million euros for the December quarter.
Revenues reached 8.524 billion euros over the period, up 10% year-on-year and above a $7.224-billion-euro result in the fourth quarter.
In a statement accompanying the results, Deutsche Bank CEO Christian Sewing said the print “put us on track for delivery on all our 2025 targets” and marked “our best quarterly profit for fourteen years.”
Other fourth-quarter highlights included:
- Profit before tax of 2.837 billion euros, up 39% year-on-year.
- CET 1 capital ratio, a measure of bank solvency, was 13.8%, unchanged from the fourth quarter.
- Post-tax return on tangible equity (ROTE) rate of 11.9%, against a 10% target for 2025.
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Treasury Secretary Scott Bessent said Tuesday that individual investors, who have largely been holding their positions through the recent market turmoil, have faith in President Donald Trump’s tariff policy.
“Individual investors have held tight, while institutional investors have panicked … individual investors trust President Trump,” Bessent said during a press briefing alongside White House press secretary Karoline Leavitt.
“Vanguard, one of the largest money management firms in America, said that over the past 100 days, 97% of Americans haven’t done a trade,” Bessent, a former hedge fund CEO, said, citing a Washington Post story with the data.
Trump’s rollout and subsequent suspension of the highest tariffs on imports in generations, fueled the worst sell-off in stocks since the onset of the pandemic in 2020. The S&P 500 briefly tumbled into a bear market before recouping some of the losses, and the equity benchmark is now about 10% off its February all-time high.
During the depth of the April rout, retail investors swooped in to snap up stocks at depressed values. At the same time, hedge funds and professional traders ran for the exit while piling on bearish wagers against the market.
Institutions have grown increasingly worried that steep tariffs will weigh heavily on consumers and slow down the economy, possibly tipping it into a recession.
Torsten Slok, chief economist at Apollo, now sees a summer recession hitting the U.S. as consumers start to see trade-related shortages in stores next month. Ken Griffin, founder and CEO of Citadel, said Trump’s global trade fight risks spoiling the “brand” of the United States and tarnishing the allure of U.S. Treasury debt.
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