Deutsche Bank has today posted its largest-ever profit under CEO Christian Sewing despite higher credit risk provisions and negative currency impacts.
The lender also upgraded its outlook for revenue at the investment bank for 2026, expecting revenue to be higher rather than just slightly higher.
Deutsche, Germany's largest lender, recorded net profit attributable to shareholders of €1.912 billion in the quarter, up from a profit of €1.775 billion a year earlier. It was better than analysts' expectations for a profit of €1.768 billion.
"This achievement is even more remarkable given the increasingly uncertain geopolitical environment since the beginning of the year, especially the conflict in the Middle East," Sewing said in a message to staff.
Deutsche Bank is one of a flurry of European banks reporting earnings this week.
The quarter - the first in a new three-year period in which Deutsche has pledged to meet more ambitious profitability and cost targets - comes as the war in Iran disrupts the economy and markets, and as fears around the health of private credit rattle investors.
Analysts at Standard & Poor's last week warned that risks for European banks are rising, citing higher inflation, slower growth, market turbulence, and exposure to vulnerable corporate sectors including chemicals.
Deutsche Bank recorded provisions for credit losses of €519m, up from €471m a year ago and higher than analysts' expectations for €447m.
The bank said provisions include an overlay "reflecting macroeconomic uncertainties".
