Deutsche Bank Sees Q1 Results Above Market View

Deutsche Bank AG (DB) said that it expects to report first-quarter group profit before tax of 206 million euros and net income of 66 million euros, above market expectations.

German banking major projects quarterly revenues to be 6.4 billion euros, and provisions for credit losses a of 500 million euros.

The bank said its Common Equity Tier 1 or CET1 ratio was 12.8% at quarter-end, down from 13.6% at year-end. The decline in the CET1 ratio in the quarter included about a 30 basis points negative impact from the revised securitization framework and about 40 basis points of items precipitated by the COVID-19 pandemic.

“The short-term implications of the COVID-19 pandemic make it difficult for the bank to accurately reflect the timing and the magnitude of changes to its original capital plan,” the bank said in a statement.

The company said it is possible that the bank will fall modestly and temporarily below its previous common equity tier 1 or CET1 target of at least 12.5%.

The bank also said it is unlikely to reach its 2020 fully-loaded leverage ratio target of 4.5%, absent regulatory adjustments to the leverage ratio calculation which may increase the banks reported ratio.

The bank noted it will continue to work towards its 2022 targets of a 12.5% CET1 ratio target and 5% leverage ratio.

Deutsche Bank reaffirmed its other financial targets, including for 2020 adjusted costs excluding transformation charges and reimbursable expenses associated with the transfer of the Prime Finance platform to BNP Paribas of 19.5 billion euros.

The company said it will publish full details of its first quarter results on April 29.

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