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Christian Sewing, CEO of Germany’s Deutsche Bank, addresses the audience during the bank’s annual meeting in Frankfurt, Germany, May 24, 2018.
Kai Pfaffenbach | Reuters
Deutsche Bank has set aside 260 million euros ($282 million) to deal with potential loan losses as a result of the coronavirus crisis, the bank said Wednesday, as it reported its first-quarter results for 2020 in full.
It comes after the German lender pre-released some figures for the last three months on Sunday.
It has now confirmed that net income was 66 million euros in the first quarter — down from the 201 million euros reported in the first quarter of 2019. Revenue came in at 6.35 billion euros, almost exactly the same a year ago.
Here are other key metrics released in the report:
- Total non-interest expenses were 5.6 billion euros versus 5.9 billion euros a year ago
- CET 1 ratio hit 12.8% versus 13.7% a year ago
The bank also set aside a total of 506 million euros in provisions for credit losses, which included about 260 million euros related to Covid-19. This is a figure that is being closely watched by investors this earnings season as banks prepare for the financial impact of the global coronavirus pandemic.
For the the full-year, the German bank said it expects provision of credit losses of 35-45 basis points of loans.
Deutsche Bank also reported higher revenues in investment banking, boosted by a 13% increase in its fixed income and currencies division, and in its private bank business. However, the corporate bank unit and asset management were flat versus the prior year.
The bank’s share price is down by about 13% over the last year.
