German bite

27 April 2017 By George Hay Follow @gfhay

The German lender’s investment bank had weaker first-quarter revenue growth than peers. Deutsche has raised capital, cut costs and survived a torrid 2016. But the more the top line struggles, the tougher it will be to get its valuation above book value.

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Deutsche Bank on April 27 reported earnings for the first quarter of 2017 of 575 million euros, up 143 percent on the same period last year.

The German lender said that first-quarter revenue was 7.3 billion euros, down 9 percent year on year, largely because of a 700 million euro accounting hit as Deutsche Bank’s credit spreads tightened. Adjusted costs were 6.3 billion euros, down 5 percent year on year.

Revenue from the markets business, which includes equity and fixed income trading, fell to 2.6 billion euros in the first quarter of 2017 from 2.8 billion euros in the first quarter of 2016. Net revenue in corporate and investment banking was largely flat at 1.8 billion euros.

As of 0915 BST, Deutsche Bank shares were trading at 16.8 euros, down 2.9 percent.

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