image

Deutsche Bank Outshines Wall St Rivals with Best Quarter Since 2014

It was the strongest quarter for Deutsche since the first quarter of 2014, as revenue at its fixed-income trading business and origination and advisory services surged, trends that have also lifted profits of competing banks.

Deutsche said it now expects revenue to be essentially flat in 2021 compared with a previous estimate of marginally lower. The shares traded 6.6% higher at 0846 GMT in Frankfurt.

The bank had hoped to trim costs to 18.5 billion euros for 2021 but additional costs of around 400 million euros in bank levies and a German deposit protection scheme following the collapse of Greensill Bank, the lender owned by insolvent UK finance firm Greensill, could make that difficult to achieve.

(Graphic: Deutsche Bank quarterly results: https://graphics.reuters.com/DEUTSCHEBANK-RESULTS/rlgvdzzmwvo/chart.png)

The profit figures were good news for Chief Executive Christian Sewing, who embarked on a radical restructuring two years ago that involved shedding 18,000 staff in an effort to return the bank to profitability.

“These results give us confidence that we’ll reach our 2022 targets,” Sewing said in a statement.

Analysts at Citigroup called it “an impressive quarter” but justified a “sell” rating with expectations the bank will miss a key profitability target – an 8% return on tangible equity in 2022.

Michael Rohr, analyst with ratings agency Moody’s, said the bank’s results “propel its profitability to a new level”.

The investment bank’s resilience shone through last year, helping Deutsche eke out a small profit for 2020, its first after five years of losses.

Questions remain about the sustainability of the investment banking boom, but analysts expect Deutsche to deliver another profit in 2021, a consensus forecast of their estimates shows.

“The trajectory we are on is significantly ahead” of last year, finance chief James von Moltke told journalists when asked about profit for 2021.

Deutsche’s key fixed-income and currency sales and trading business, with revenue up 34% at nearly 2.5 billion euros, marked its best quarter since 2015.

That growth is better than some U.S. investment banks. Goldman Sachs reported a 31% rise in such trading in the first quarter, while those at JPMorgan were up 15%.

Origination and advisory services revenue at Deutsche, up 40%, showed its best quarter since 2017. That was partly due to its business in Special Purpose Acquisition Companies (SPACs). Asset management revenue rose 23%.

Low interest rates and a slowdown in global trade pressured revenue at Deutsche’s other divisions, such as those for corporate and retail clients, where revenue stagnated.

In a sign the bank sees itself over the hump of the coronavirus pandemic, it expects risk provisions for credit losses of around 1.1 billion euros this year, down from 1.8 billion last year.

“It remains to be seen if that will be enough,” Klaus Nieding of the shareholder lobby group DSW said.

(Reporting by Tom Sims and Patricia Uhlig; editing by Jason Neely and Elaine Hardcastle)


Source link

0 0 voter
Article Rating

S’abonner
Notifier de
0 Commentaires
Commentaires en ligne
Afficher tous les commentaires
Reset Password

Avertissement sur les risques :

Le trading peut vous exposer à des risques de pertes supérieures aux dépôts et ne convient qu’à une clientèle avisée ayant les moyens financiers de supporter un tel risque. Les CFD sont des instruments complexes et présentent un risque élevé de perte rapide en capital en raison de l’effet de levier. Entre 74 et 89% des comptes de clients de détail perdent de l’argent lors de la négociation de CFD. Vous devez vous assurer que vous comprenez comment les CFD fonctionnent et que vous pouvez vous permettre de prendre le risque élevé de perdre votre argent. Ce site n’est en aucun cas une offre de conseil en investissement ni une incitation quelconque à acheter ou vendre des instruments financiers. Trader le Forex et/ou les CFD’s implique un niveau de risque élevé, et peut ne pas être approprié car vous pouvez subir des pertes supérieures à votre dépôt. L’effet de levier peut être en votre défaveur.

Vous devez être conscient et avoir une compréhension complète de tous les risques associés au marché et au trading. Le site Union-trader.com peut être amené à produire des commentaires d’ordre général, ce qui ne constitue pas des conseils en investissement et ne doit pas être interprété comme tel.

Veuillez recourir aux conseils d’un conseiller financier extérieur. Le site Union-trader.com décline toute responsabilité pour les erreurs, inexactitudes ou omissions et ne garantit pas l’exactitude ou le caractère complet des informations, textes, graphiques, liens ou autres éléments contenus dans cette documentation. Toute information et toute mise à disposition sur le site ont un caractère privé.