FRANKFURT (Reuters) – Deutsche Bank swung to a loss in the first quarter as the bank undergoes a costly overhaul and battles revenue pressure as the coronavirus crisis slams the brakes on the global economy.
The German lender, which earlier this week published some earnings results, reported on Wednesday a bottom-line loss of 43 million euros ($46.64 million) attributable to shareholders in the quarter, compared with a 97 million euro profit a year ago.
The figure, like those disclosed on Sunday, was still better than analysts had initially expected, and reflect a revenue lift from a surge in trading as markets swung wildly.
But the quarterly performance may say little about the bank’s outlook for the rest of the year as it tries to engineer a turnaround after five years of losses.
The coronavirus outbreak didn’t kick in until the quarter was well underway, and the bank has said it may miss some targets. Some senior bankers have privately grown more pessimistic about the speed of the economic recovery over recent weeks.
“In the current crisis, we have shown robust numbers and demonstrated strong performance in support of our clients across all core businesses,” Deutsche Bank chief executive Christian Sewing said in a statement accompanying the results.
Deutsche, now in its 150th year, has not fully recovered from the last financial crisis more than a decade ago.
Bankers hope the current crisis will allow it to gain market share in Europe as U.S. banks retreat and the lender helps funnel loans, mostly backed by the government, to the nation’s companies.
A bright spot in Deutsche’s earnings were revenues at the investment bank, which rose 18% in the quarter.
But the bank warned of a deteriorating performance for the division in the quarters ahead, meaning that for the full year revenue will be only slightly higher than in 2019.
($1 = 0.9219 euros)
(Reporting by Tom Sims, Patricia Uhlig, Arno Schuetze and Hans Seidenstuecker; Editing by Michelle Martin & Shri Navaratnam)