Deutsche Bank Q1 Earnings Rise Y/Y on Higher Revenues & Lower Expenses

Deutsche Bank DB reported first-quarter 2025 earnings attributable to its shareholders of €1.78 billion ($2.01 billion), up 39.2% year over year.This Germany-based lender reported a profit before tax of €2.8 billion ($3.2 billion), up 39.3% year over year. The reported figure included €30 million ($34.1 million) of litigation items. Results were aided by a rise in revenues and lower expenses. However, higher provision for credit losses was a spoilsport.Deutsche Bank’s Revenues & ExpensesThe bank generated net revenues of €8.5 billion ($9.7 billion), up 9.6% year over year. This upside was primarily driven by strong growth in net interest income and net commissions and fee income.Non-interest expenses of €5.2 billion ($5.9 billion) declined 1.7% from the prior-year quarter. The decline was primarily due to lower general and administrative expenses.Adjusted non-interest expenses (excluding nonoperating items) were €5.1 billion, up 1.6% from the prior year quarter.Provision for credit losses was €471 million ($535.8 million), up 7.3% from the prior-year quarter.DB’s Segmental PerformanceCorporate Bank: Net revenues from the segment were €1.9 billion ($2.1 billion), down marginally year over year. The results were hurt by lower net interest income and a decrease in Business Banking revenues.Investment Bank: This segment’s net revenues totaled €3.4 billion ($3.8 billion), up 10.3% year over year. The upside was primarily driven by growth across Fixed Income and Currencies, and Equity Origination & Advisory.Private Bank: Net revenues of €2.4 billion ($2.8 billion) were up 2.7% year over year.Asset Management: Net revenues of €730 million ($830.4 million) rose 18.3% year over year. An increase in performance and transaction fees led to the rise.Corporate & Other: The segment reported net revenues of €127 million ($144.5 million) against negative $139 million in the prior-year quarter.Deutsche Bank’s Capital PositionDB’s Common Equity Tier 1 capital ratio was 13.8% as of March 31, 2025, up from the year-ago quarter’s 13.4%.The leverage ratio on a fully loaded basis was 4.6%, up from the year-ago quarter's 4.5%.Our Viewpoint on Deutsche BankA strong balance sheet position and a shift toward a capital-light business model will likely support Deutsche Bank's financials. Also, the company’s strong capital position aids sustainable capital distribution moves. However, an elevated expense base is likely to hurt its bottom-line growth.Deutsche Bank Aktiengesellschaft Price, Consensus and EPS Surprise Deutsche Bank Aktiengesellschaft price-consensus-eps-surprise-chart | Deutsche Bank Aktiengesellschaft QuoteThe company currently has a Zacks Rank #2 (Buy).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Performance of Another Foreign BankICICI Bank Ltd.’s IBN net income for the fourth quarter of fiscal 2025 (ended March 31) was INR126.3 billion ($1.5 billion), up 18% from the prior-year quarter. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)IBN’s results were driven by a rise in NII, non-interest income and growth in loans and deposits. However, higher operating expenses and provisions were the headwinds.An Upcoming Foreign Bank Earnings ReleaseUBS Group AG UBS is scheduled to release first-quarter 2025 earnings on April 30. UBS’ quarterly earnings estimates have remained unchanged at 42 cents over the past week.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Deutsche Bank Aktiengesellschaft (DB): Free Stock Analysis Report UBS Group AG (UBS): Free Stock Analysis Report ICICI Bank Limited (IBN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks