Deutsche Bank’s trade division set a record in the first quarter as market volatility benefited.
According to a statement from Deutsche Bank on Tuesday, the fixed income and money business grew 17% to €2.9 billion in three months. The results exceeded analysts’ expectations, the highest expectations since at least 2013, according to data compiled by Bloomberg.
This is the latest bank earnings, showing how traders can make a lot of profits in the market volatility set by the Trump administration. At the same time, this uncertainty has prompted slowdown in global companies’ investment, including the potential impact of acquisitions at the bank’s bottom line.
CFO James von Moltke said on Bloomberg TV that some transaction-dependent business units slowed down “sharply” in April, despite highlighting a strong pipeline. He said fixed income transactions also took a hit in the first two weeks of the month and have only returned to their “healthy” performance since then.
When asked about investor spending, Von Moltke said lenders will “reevaluate” after the second quarter.
Deutsche Bank shares rose 4% in early Frankfurt trading, up 2.6% at 9:11 a.m.
“The results for the first quarter “make our hopes of delivering on all 2025 targets,” Deutsche Bank CEO Christian Sewing said in a statement.
Deutsche Bank raises its credit terms to 471 million euros, including 100 million euros, to protect its macro background. Shareholders’ net income attributable to the stock rose to 1.8 billion euros.
Deutsche Bank said in its quarterly report that the economic outlook is “still uncertain” given the turbulence in April. It said it had reviewed its credit portfolio “prepared for potential impact on vulnerable customers” and decided to add a “special tariff cover” to its credit regulations.
RBC analyst Anke Reingen described the results as “strong,” but also noted: “The impact of tariffs increases uncertainty.”
With the assistance of Macarena Muñoz.
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