Left on the shelf

26 April 2019 By Christopher Thompson Follow @CGAThompson

A day after the German bank ended Commerzbank merger talks it reported a 1.3 pct first-quarter return. Cost cuts at least broadly kept pace with falling revenue. Yet poor performance and zero deal synergies mean even a lowball 4 pct return target is not in Deutsche Bank’s gift.

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Deutsche Bank on April 26 reported a 32 percent year-on-year decline in first-quarter pre-tax profit to 292 million euros, on net revenue which fell by one-tenth to 6.4 billion euros.

Net revenue at the German lender’s corporate and investment banking division decreased by 13 percent year-on-year to 3.3 billion euros. The bank made an annualised 1.3 percent return on tangible equity in the quarter, compared to 0.9 percent over the same period in 2018, mostly due to a lower tax rate.

The bank’s common equity Tier 1 capital ratio was 13.7 percent, compared to 13.6 percent at the end of 2018.

Deutsche Bank shares were down 3.8 percent to 7.20 euros by 0822 GMT on April 26.

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