Deutsche Bank has set aside 260 million euros ($282 million) to deal with potential loan losses as a result of the coronavirus crisis, the bank said Wednesday, as it reported its first-quarter results for 2020 in full.
It comes after the German lender pre-released some figures for the last three months on Sunday.
It has now confirmed that net income was 66 million euros in the first quarter — down from the 201 million euros reported in the first quarter of 2019. Revenue came in at 6.35 billion euros, almost exactly the same a year ago.
Here are other key metrics released in the report:
The bank also set aside a total of 506 million euros in provisions for credit losses, which included about 260 million euros related to Covid-19. This is a figure that is being closely watched by investors this earnings season as banks prepare for the financial impact of the global coronavirus pandemic.
For the the full-year, the German bank said it expects provision of credit losses of 35-45 basis points of loans.
Speaking to CNBC Wednesday, James von Moltke, CFO of Deutsche Bank, said: "We think the provision is appropriate for the risk in our loan book."
Deutsche Bank also reported higher revenues in investment banking, boosted by a 13% increase in its fixed income and currencies division, and in its private bank business. However, the corporate bank unit and asset management were flat versus the prior year.
The German lender has grappled with litigation charges, lower market share in investment and commercial banking and a number of management reshuffles over the past decade.
"We intend to continue to deliver on our cost target this year and the year to come … For sure this year will be more difficult than we anticipated but we are doing everything we can both in the management of our risk and our costs to preserve profitability," von Moltke told CNBC.
The bank's share price is down by about 13% over the last year.