Deutsche Bank stunned markets with a decade-high quarterly performance, reporting a 47% surge in Q1 2025 net profit to €2.1 billion—blowing past the €1.6 billion consensus estimate. The blockbuster results validate CEO Christian Sewing’s ambitious turnaround strategy, marking a pivotal milestone in his five-year restructuring effort to revive the German banking giant.

Key Highlights:

• Investment Bank Surge: Fixed income trading revenue up 35% to €3.2B

• Cost Cuts Pay Off: Operating expenses down 12% to €5.9B

• Capital Strength: CET1 ratio improves to 13.8% (from 13.2%)

Strategic Wins:

1. US Expansion: Wall Street operations now contribute 28% of profit

2. Wealth Management: €23B in net new assets (2.5x industry avg)

3. Digital Push: 19M active mobile users (+31% YoY)

Challenges Ahead:

• Russian exposure: €1.2B in remaining provisions

• ECB rate cuts could squeeze NII

• US regulators probing ESG disclosures

Market Reaction:
Investors roared approval, sending shares soaring 8.7% in Frankfurt – the bank’s biggest single-day gain since the pandemic markets of 2020.