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.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Fitschen and Jain added: "Both PBC and GTB overcame the challenge of persistent low interest rates to achieve near record quarterly profits."