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Tough markets, restructuring weigh on Deutsche Bank Q1 profit

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Tough markets, restructuring weigh on Deutsche Bank Q1 profit

Deutsche BankAG reported a year-over-year decline in first-quarter profit, whichit said reflected challenging conditions in the financial markets as well asthe impact of its decisions to exit or reduce certain businesses.

First-quarter net profit attributable to shareholders andadditional equity components amounted to €214 million, compared to €544 millionin the same period a year ago. EPS was 15 cents, compared to 38 cents a yearearlier.

Net interest income fell on a yearly basis to €3.92 billionfrom €4.21 billion, while commissions and fee income declined to €2.88 billionfrom €3.26 billion.

Net revenues decreased to €8.07 billion from the year-ago€10.38 billion. Co-CEO John Cryan said the decline in client activity in thecapital markets led to the drop in the bank's revenues, most notably in itstrading and corporate finance businesses.

The bank's corporate and investment banking division bookedfirst-quarter net revenues of €1.83 billion, compared to €2.14 billion a yearearlier. Net revenues in the private, wealth and commercial clients divisiondeclined on a yearly basis to €1.74 billion from €2.09 billion. Deutsche Asset& Wealth Management reported a year-over-year fall in first-quarter netrevenues to €736 million from €840 million.

The group's provisions for credit losses amounted to €304million, up from the year-ago €218 million. Noninterest expenses fell to €7.18billion from €8.68 billion a year earlier, mainly driven by a reduction inlitigation expenses, which totaled €187 million, compared to €1.54 billion inthe first quarter of 2015.

The bank's fully loaded common equity Tier 1 capital ratiounder CRR/CRD IV stood at 10.7% as at March-end, compared to 11.1% at the endof 2015 and March 31, 2015. Deutsche Bank said the of its stake in , expected toclose in the second quarter, will boost its CET1 ratio.