Deutsche Bank started the year 2023 better than expected with a profit in the billions.
Germany’s largest money house earned 1.158 billion euros in the first quarter, an increase of nine percent (previous year: 1.06 billion), as the institute announced on Thursday.
That exceeded the expectations of the analysts, who had expected an average of around 977 million euros. Deutsche Bank was thus able to report the eleventh quarter of profits in a row.
We want to save more operational costs than previously planned and use our capital more efficiently in order to increase the distributions to our shareholders and our returns
Christian Sewing, CEO of Deutsche Bank
In order to drive profits further up, the board wants to reduce costs even more than previously planned, as Germany’s largest financial institution announced on Thursday in Frankfurt.
Job cuts planned in management levels and non-customer areas
The Dax group wants to save costs through “strict hiring restrictions in customer-remote areas”, “targeted job cuts in management levels”, the streamlining of the construction financing business and the further reduction of the technology center in Russia.
In the first quarter, the pre-tax profit increased by twelve percent compared to the first three months of the previous year to a good 1.85 billion euros. According to Deutsche Bank, this is the highest quarterly result since 2013.
The bottom line is that the shareholders of the Dax group accounted for around 1.16 billion euros in surplus after 1.06 billion euros a year earlier.
Planned cost savings of 2.5 billion euros
The results of the first quarter show that the bank is well on the way to “achieving or exceeding the targets set by the Management Board for 2025,” said CEO Christian Sewing.
“We want to implement our strategy even faster with the additional measures announced today,” says Sewing. The additional cost savings should now add up to 2.5 billion euros, previously 2.0 billion euros had been targeted. (AP, Reuters)
