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HomeBank CapitalDeutsche Bank AG (DB) Q1 2021 Earnings Call Transcript

Deutsche Bank AG (DB) Q1 2021 Earnings Call Transcript

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Deutsche Bank AG (NYSE:DB)
Q1 2021 Earnings Call
Apr 28, 2021, 7:00 a.m. ET


  • Prepared Remarks
  • Questions and Answers
  • Call Participants

Prepared Remarks:


Ladies and gentlemen, thank you for standing by. I’m Haley, your Chorus Call operator. Welcome, and thank you for joining the Deutsche Bank Q1 2021 Analyst Call. [Operator Instructions]

And I would now like to turn the conference over to Ioana Patriniche, Head of Investor Relations. Please go ahead.

Ioana PatrinicheHead of Investor Relations

Thank you for joining us for our first quarter 2021 results call. As usual, our Chief Executive Officer, Christian Sewing, will speak first, followed by our Chief Financial Officer, James von Moltke. The presentation, as always, is available for download in the Investor Relations section of our website, Before we get started, let me just remind you that the presentation contains forward-looking statements, which may not develop as we currently expect. We therefore ask you to take notice of the precautionary warning at the end of our materials.

With that, let me hand over to Christian.

Christian SewingChief Executive Officer

Thank you, Ioana. A warm welcome from me as well. It’s a pleasure to be discussing our first quarter 2021 results with you today. We gave ourselves 14 quarters to transform Deutsche Bank and 7 quarters are now behind us. Halfway through our time frame, we have already completed much of the transformation journey. We have continued to deliver against our transformation milestones. We are on or ahead of our expected time line on all key measures.

We said at the Investor Deep Dive in December we would focus on delivering sustainable profitability. With revenue growth in the quarter up 14% to EUR7.2 billion, we demonstrated what this franchise is capable of. We generated EUR1.6 billion of pre-tax profit and EUR1 billion of profit after tax. That’s our best quarter in 7 years despite our now smaller footprint. That enabled us to generate meaningful capital from net income, which helped us strengthen our capital ratio in the quarter. Excluding the bank levy, our pre-tax profit is EUR2.2 billion, demonstrating our strong operating performance.

We also made progress on costs. Our adjusted costs, excluding transformation charges and bank levies, reduced from EUR4.9 billion to EUR4.6 billion year-on-year, in line with the path we provided with our fourth quarter 2020 results. We remain disciplined on capital, risk and balance sheet management, and we successfully navigated several market events during the quarter. We are delivering on our path to higher return on tangible equity for the group with progress to a sustainable profitability. This quarter, we generated a 7.4% return on tangible equity, including full recognition of the annual bank levy. Progress across all business in the first quarter reinforces our confidence that our strategic path…

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