DB posts big increases in Q1

Deutsche Bank (DB) has announced a Q1 net income of €1.8bn (US$2.4bn), up 33% from the same period of 2009.

The corporate and investment bank posted a record income before taxes of €2.7bn (US$3.6bn) and net revenues of €6.6bn (US$8.8bn), an increase of €1.7bn (US$2.69bn) from Q1 last year.

However, the global transaction banking arm of DB revealed a dip in net revenues, dropping to €636mn (US$849mn) from €666mn (US$889mn).

The bank claims that growth in trade finance revenues was offset by lower revenues in corporate cash management and trust and securities services, caused by low interest rates and reduced transaction volumes in DB’s domestic custody business.

Josef Ackermann, chairman of DB’s management board, remarks: “The economic environment clearly stabilised in the first quarter of 2010, but it is not without some remaining vulnerability. In this environment, Deutsche Bank has once again demonstrated its earnings power.

“The key component for achieving the very good result in the first quarter of 2010 was our global investment banking franchise. [The corporate and investment bank’s pre-tax profit] is all the more remarkable as it was achieved despite the fact that the bank has significantly reduced its risk positions and cut its proprietary trading activities to a very low level.”