German banking major Deutsche Bank has reported a sharp fall in profits after paying EUR1.5bn to cover legal costs and regulatory fines.
The bank’s quarterly net profit for the first quarter of 2015 has decreased to EUR559m as against EUR1.1bn a year ago, despite a 24% rise in revenue driven primarily by an increase in client trading activity.
Deutsche Bank co-CEOs Jürgen Fitschen and Anshu Jain said: "In the first quarter 2015, revenues were close to record levels, reflecting the strength of our franchise across all our core businesses.
"Profits were impacted by litigation expenses of EUR1.5bn, primarily reflecting the bank’s definitive settlement with US and UK authorities relating to interbank offered rates (IBOR) and bank levy charges of EUR561m."
The group’s net revenues increased to EUR10.4bn compared to EUR8.4bn in the first quarter of 2014, supported by favourable foreign exchange movements while the group income before income taxes has decreased to EUR1.5bn versus EUR1.7bn during the same period in 2014.
The bank’s global transaction banking (GTB) income before income taxes increased 15% yielding EUR409m and net revenues reached EUR1.1bn surging by 11%, in comparison with the year ago quarter.
Fitschen and Jain added: "Both PBC and GTB overcame the challenge of persistent low interest rates to achieve near record quarterly profits."