Germany's flagship lender Deutsche Bank has more than doubled its first-quarter net profit to 575 million euros ($627 million), benefitting from lower legal costs for past misdeeds and a rebound in debt trading. As Sonia Legg reports, Britain's Lloyds has also reported ready first quarter profit, defying analysts' expectations of a dip following the Brexit vote.
After so much bad press in recent months John Cryan was quick to respond to the good news. "Our cost cutting efforts are starting to pay off", the CEO said in a statement, "client engagement is strong" and "asset flows are returning". First quarter net profit at Deutsche Bank more than doubled to 575 million euros. It was partly due to lower legal costs for past misdeeds and a rebound in debt trading But total revenues still lagged peers, down 9 percent at 7.3 billion euros. (SOUNDBITE) (English) CRAIG ERLAM, SENIOR MARKETS ANALYST, OANDA, SAYING: "I think the biggest thing that is likely to impact Deutsche negatively going forward is these legacy issues, that's what has really hurt the bank over the past few years. Assuming we don't get many more of these going forward then we could be starting to turn a corner. But you never get too optimistic with a bank like Deutsche Bank." Germany's flagship lender has been on a mission to reform. It's thrown out products, cut ties with thousands of clients and axed more than 3,000 jobs Some reports suggest it's also about to move 4,000 positions out of Britain because of Brexit. The June vote to leave the EU was expected to be a big problem for UK banks. But first quarter profit at Lloyds - which was bailed out by the state in 2008 - remained steady, defying analysts predictions of a dip. Underlying profit before tax was £2.1 billion - a return to full private ownership is expected within months.