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Deutsche's investment bank shows weakness even as first-quarter profit jumps

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Deutsche's investment bank shows weakness even as first-quarter profit jumps
FILE PHOTO: People are silhouetted next to the Deutsche Bank's logo prior to the bank's annual meeting in Frankfurt, Germany, May 24, 2018. REUTERS/Kai Pfaffenbach   -   Copyright  KAI PFAFFENBACH(Reuters)
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FRANKFURT (Reuters) – Revenue at Deutsche Bank’s cash-cow bond-trading division fell 19 percent in the first quarter, underscoring continued weakness at the German lender’s investment bank.

It reported on Friday a net revenue at its sprawling global investment bank – which accounts for more than half Deutsche’s overall revenue – of 3.3 billion euros (£2.84 billion), down 13 percent from a year ago.

The weakness at the investment bank in the quarter, which was a difficult one for the broader industry, came as the German flagship lender posted a net profit of 201 million euros, up 68 percent from a year ago.

On Thursday, the bank announced in an early earnings release that it expected net profit of about 200 million euros, beating analysts’ expectations of 29 million.

Christian Sewing, the bank’s chief executive officer, said the bank was “well on track” to meet its 2019 cost targets.

“Our first-quarter results demonstrate the strength of our franchise and our continued progress in executing our plans in a very challenging market environment,” Sewing said.

(Reporting by Tom Sims; Editing by Tassilo Hummel and Himani Sarkar)

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