Deutsche Bank Earnings: The Bank Withstood Its First True Test This Quarter

First-quarter profit before tax at Deutsche Bank of EUR 1,852, which was up 12% versus the same period a year ago, was good. The bank showed a good performance in the corporate bank and the private bank, while the investment bank recovered from a poor performance in the last quarter of 2022. Return on tangible equity of 8.3%, a 13.6% common equity Tier 1 ratio including a 250-basis-point buffer above minimum requirements, and shareholder distributions including share buybacks potentially in 2023, are a show of strength after a quarter that we believe the Deutsche Bank of just a few years ago may not have withstood. We maintain our EUR 12.90 per share fair value estimate and no-moat rating.