Deutsche Bank saw revenue from debt trading and sales climb almost three-fold to €3.8 billion ($4.95 billion), fuelling a jump in net profit, a bumper result despite the worst recession in a generation.
The bank said it made a net profit of €1.2 billion ($1.56 billion) in the first three months of the year, compared to a loss of €141 million a year earlier. The result was better than analysts’ predictions, which were less than €800 million on average.
Nonetheless, there were further signs of the scars of market ructions as the bank announced that it had further writedowns of €1 billion, primarily against monoline insurers.
Investors value Deutsche Bank stock at a discount to its two big European investment banking rivals, UBS and Credit Suisse. Deutsche’s stock trades on a multiple of 10 times forecast future earnings, according to StarMine, trailing Credit Suisse’s almost 15 times or UBS’s more than 12 times. (Reuters)