Deutsche Bank shares dropped more than 3 percent on Thursday morning after reporting lower-than-expected revenue for its first quarter at a time when banking stocks have seen sharp gains after centrist Emmanuel Macron emerged as the winner in the first round of French presidential elections last week.
- Pre-tax profit of 878 million euro, up 52% year-on-year
- Revenue: 7.3 billion versus 8.05 billion euros expected by Reuters' analysts
The bank's revenue stood at 7.3 billion euros, a 9 percent drop compared to this time last year. This missed Reuters estimate of 8.05 billion euros. The German lender said the first-quarter earnings were hit by a negative impact of credit spreads. It added however that without such impact, revenues would have been broadly flat on a yearly basis.
Net income, however, doubled to 575 million euros in the first quarter, compared to 236 million a year ago.
This was the first earnings report since the lender completed an 8.5 billion-euro capital increase earlier this month.
Marcus Schenck, Deputy CEO and CFO of Deutsche Bank, told CNBC on Thursday that the first quarter was a "decent start" into 2017 and this year "isn't going to be a loss year".
"Last year from a reported revenue point of view, we had a positive revenue as a consequence of our credit spreads widening. This quarter is the opposite. Our credit spreads, which is our wanted outcome, have come down substantially," he said.