FRANKFURT (April 25): Deutsche Bank posted on Thursday a better-than-expected 10% increase in first-quarter profit as a resurgence in fixed-income trading and deal-making propelled revenue at its investment banking division.

Net profit attributable to shareholders was €1.275 billion (RM6.5 billion) in the quarter. That compares with profit of €1.158 billion a year earlier, and it was better than analyst expectations for profit of around €1.2 billion.

The gains mean investment banking was able to reclaim its position as Deutsche's biggest breadwinner from its giant retail division that had recently benefited from higher interest rates but suffered from customer service glitches.

The group's figures marked the 15th consecutive quarter of profit — a considerable streak in the black for Deutsche after hefty losses during the last decade.

"These results represent another step forward," chief executive officer Christian Sewing said in a note to staff.

He said the bank remained committed to its 2025 goals, which include a decline in its cost-to-income ratio that analysts believe may be too ambitious.

Despite the bank's better-than-expected earnings, Deutsche is navigating a weak economy in its home market, even if German business morale has improved.

And regulators have warned that 2024 will be less rosy for German bank profits as a property crisis weighs and loans go bad.

Deutsche's investment banking revenue rose 13% during the quarter, better than the 6.9% rise expected by analysts. A 5% drop in revenues at the corporate bank missed expectations for a 3.5% fall, and the retail division's 2% revenue decline came in as forecast.

Revenue for fixed-income and currency trading, one of the bank's largest businesses, rose 7% from a weak quarter a year earlier. That beat expectations for a 2.6% gain and was ahead of a 3% drop by the biggest US banks.

Origination and advisory was a bright spot, with revenue rising 54%, compared with expectations of a 36% increase and outpacing gains of 25% among big US competitors.

Analysts now expect the investment bank to remain Deutsche's biggest income generator through 2026. That is a shift in expectations from last year, when analysts forecast the retail bank would dominate.