Deutsche Bank: shares rise after earnings confirmed
(CercleFinance.com) - Deutsche Bank on Wednesday announced first-quarter net profit of 66 million euros, from 201 million euros in the same period a year ago, thereby confirming its preliminary results that were unveiled last Sunday.
The German lender said provisions for credit losses reached 506 million euros, including approximately 260 million euros related to COVID-19, which represents over 50% of the charge.
Perhaps most impressive however, was the provision for credit losses taken in the quarter, with the allowance for loan losses increased to 4.3 billion euros, equivalent to 95 basis points of total loans.
Deutsche Bank said it expects to book a full-year 2020 provision of credit losses of 35-45 basis points of loans.
The bank said its "core" business made a pre-tax profit of 1.1 billion euros, up 32%, while its so-called "capital release unit," or bad bank posted a pre-tax loss of 767 million euros, in line with expectations.
The unit continued to progress with asset reduction, despite challenging market conditions, Deutsche Bank said.
DB also said on Wednesday that its CET1 capital ratio - a measure of financial strength - was 12.8% at the end of the first quarter, approximately 240 basis points above regulatory requirements.
The share was up 3.2% on the Frankfurt Stock Exchange after this report.
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