Deutsche Bank has announced pre-tax profits of €1.6 billion in the first part of the year, the highest since 2014.

Profits were up from just €206 million in the first quarter of 2020.

The bank said the record numbers were driven by revenue growth, a substantial reduction in provision for credit losses, and lower adjusted costs year-on-year.

Core bank profit before tax hit € 2.0 billion, more than double what was recorded in the same period last year, which was driven by growth across the whole core business.

Corporate bank profits were up by 90 per cent to €229 million, while the investment bank saw growth of 92 per cent to €274 million.

The bank’s asset management division saw profits rise by 66 per cent to €183 million.

The Capital Release Unit reported a loss before tax of €410 million in the first few months of the year, compared to a loss before tax of €765 million in the first quarter of 2020. Th bank said that this improvement was partly driven by net revenues of € 81 million in the quarter, compared to a loss of € 57 million in the prior year quarter.

“Our first quarter is further evidence that Deutsche Bank is on the right path in all four core businesses, and is building sustainable profitability,” said Christian Sewing, chief executive, Deutsche Bank. “In addition to substantial revenue growth over an already-strong prior year quarter, we demonstrated cost and risk discipline."

Sewing added that the bank had achieved a post-tax return on tangible equity of above 7 per cent, with returns in the Core Bank already ahead of its ambition for next year.

The chief executive said that the results give the organisation confidence that it will reach its 2022 targets.

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