Deutsche Bank reported income before income taxes of 432 million euros, versus 878 million euros in the first quarter of 2017.
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Net income was 120 million euros, versus 575 million euros in the prior year period.
Revenues were down slightly, and were impacted by exchange rate movements. In the first-quarter of 2018, net revenues were 7.0 billion euros, down 5% versus the prior year period.
The year-on-year development was primarily driven by exchange rate movements, notably the appreciation of the euro against the U.S. dollar, and lower revenues in the Corporate & Investment Bank. The prior year quarter was negatively impacted by Debt Valuation Adjustments.
Adjusted costs were essentially stable, and up slightly on an FX-adjusted basis. Noninterest expenses were 6.5 billion euros in the quarter, up 2% versus the prior year period.
Adjusted for exchange rate movements, noninterest expenses were up 6%. Adjusted Costs were 6.3 billion euros, essentially unchanged on a reported basis, and up 4% taking account of exchange rate movements. Current -quarter adjusted costs included bank levies of 0.7 billion euros.
Bank levies increased by 124 million euros or 23% year-on-year, mainly driven by industry-wide higher annual contributions to the Single Resolution Fund, for which the full-year estimate is recorded in the first quarter.
IT costs were higher by 86 million euros, or 118 million euros on an exchange rate adjusted basis, driven by depreciation charges on self-developed software, IT investments in the Private & Commercial Bank and investments to modernise IT infrastructure.
Compensation and benefits expenses were slightly lower, as lower headcount and lower retention accruals more than offset wage inflation.
Credit quality remained strong. Provision for credit losses of 88 million euros declined by 34% versus the prior year quarter, partly reflecting releases in the Corporate & Investment Bank, driven primarily by favourable developments in the shipping segment.
The capital ratio remains solid. The Common Equity Tier 1 (CET1) ratio was 13.4% at the end of the first quarter, versus 14.0% at the end of 2017. ■