German financial institution Deutsche Bank increased its first-quarter profit by eight percent to 1.3 billion euros (CZK 30.5 billion). Revenues from higher interest rates offset a drop in earnings in the investment division. Germany’s biggest bank said in an earnings report today. The results were better than analysts’ estimates, with the financial institution posting its eleventh profitable quarter. Due to cost-cutting, the bank announced that it will cut jobs.
Long-term positive numbers
The eleven profitable quarters is the longest streak in positive numbers in at least a decade. “We have worked hard to achieve this stability,” Deutsche Bank CEO Christian Sewing told employees in an internal memo. The bank’s net sales rose five percent year-on-year to 7.7 billion euros in the first quarter.
Unmet expectations
Revenue at the investment division fell 19 percent to 2.6 billion euros in the quarter, more than expected. Estimates, by contrast, were beaten by the results of the corporate division and the retail and private client services division.
The bank said it will reduce staff in non-customer-facing positions in the coming years. In the second quarter, it plans to reduce the number of managers in these positions by five percent.
Source: the Czech Press Office
