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Christian Sewing seems to be at the height of his power: He has delivered the best quarterly result in seven years.

1.6 billion euros profit before taxes.

That is significantly more than the money house earned in the entire previous year - and what investors had expected in advance.

Investors are thrilled.

The share was listed on Wednesday morning at times by more than six percent in the plus.

Sewing has not only regained the trust of investors, the supreme control body also has his back.

Chairman of the supervisory board, Paul Achleitner, extended the 51-year-old's contract a few weeks ago, earlier than expected, and extended it for five years.

Seldom has the power of a CEO at Deutsche Bank seemed so cemented.

The institute has seldom seemed so stable.

After five consecutive years of losses, Deutsche Bank managed to turn the tide

Despite the Corona crisis, Deutsche Bank achieved a significant annual profit: in 2020, net profit amounted to 624 million euros - after a loss of almost 5.3 billion euros in the previous year, as the bank announced.

Source: WORLD

In fact, the results are impressive: all segments were able to increase their profits.

This was not only due to the lower costs, but also to the increased income - even in the private and corporate customer business, which has been particularly hard hit by the negative interest rates.

Overall, income increased by 14 percent to a good 7.2 billion euros.

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In addition, the institute expects a significantly lower exposure to bad loans this year.

The economic consequences of the Corona crisis are apparently not quite as bad as initially feared.

The Deutsche Bank benefits above all from the good results of the investment bank: The income in the division rose compared to the same quarter of the previous year by a third to around 3.1 billion euros.

This is mainly due to the boom in the markets.

But the bank also grew in business with corporate and private customers and in asset management, with profits rising in all business areas.

The fund subsidiary DWS also posted a strong increase in profits in the first quarter.

Among other things, higher fee income let the surplus rise by 39 percent to 169 million euros.

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Before taxes, the institute made over a billion euros in profit.

For comparison: In the same period last year it was 66 million euros.

However, interest payments for certain bonds still have to be deducted, so that the bottom line was a profit of 908 million euros for the shareholders of the Frankfurt Dax group.

CFO James von Moltke did not want to give a specific forecast of net profit this year.

However, the entire development points to a better result than 2020, said von Moltke.

Charge low interest rates

The biggest negative factors for the business are the low interest rates and the risk that the very high profits of volatile investment banking will shrink again.

Sewing said: "We firmly expect that the consequences of the low interest rates will gradually have less of an impact on our earnings in the corporate bank and the private customer bank compared to the previous year."

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In addition, there are “more and more indicators” that a considerable part of the earnings growth in the investment bank since 2019 will prove to be sustainable.

"Even if the markets will normalize as expected in the coming months, we now expect similarly high earnings for 2021 as in the very strong previous year."

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