Deutsche Bank (DBK) Q1 earnings 2025
Deutsche Bank, Germany’s largest lender, reported higher-than-expected first-quarter profit driven by strong performance in its investment banking division. The bank posted a net profit of 1.775 billion euros ($2.019 billion), up 39% from the previous year and surpassing analyst expectations. Revenues for the quarter reached 8.524 billion euros, a 10% increase year-on-year.
CEO Christian Sewing stated that the results put the bank on track to achieve its 2025 targets and marked its best quarterly profit in fourteen years. The bank’s shares rose by 2.5% following the announcement.
Key highlights from the first quarter included a profit before tax of 2.837 billion euros, a CET 1 capital ratio of 13.8%, and a post-tax return on tangible equity rate of 11.9%. The provision for credit losses increased to 471 million euros, reflecting uncertainties in the geopolitical and macro-economic outlook.
The bank’s investment banking division saw a 10% increase in net revenues to 3.4 billion euros, with strong performance in fixed income and currencies partially offset by a decline in origination & advisory. Asset management net revenues also rose by 18% to 730 million euros.
Deutsche Bank has been relying on its investment banking operations to offset diminishing gains from loans in a low-interest rate environment. The bank’s CFO, James von Moltke, expressed confidence in the momentum of the business and highlighted the importance of maintaining expense discipline.
The bank’s performance is expected to be influenced by the political environment in Germany, particularly under a centrist coalition government led by Friedrich Merz. Policy changes, including higher defense expenditure and fiscal reforms, are expected to benefit German banks and boost regional investment.
Despite uncertainties in financial markets due to U.S. tariff policies, Deutsche Bank remains optimistic about its growth prospects, especially in the Americas. The bank sees opportunities for growth in credit trading, rates, and corporate finance. The CFO emphasized the importance of being prudent in reflecting the current economic environment in credit provisions.
Overall, Deutsche Bank’s solid performance in the first quarter positions it well for future growth, with a focus on investment banking and strategic decision-making in response to market conditions. “Study Finds Link Between Social Media Use and Depression”
A recent study published in the Journal of Social and Clinical Psychology has found a strong link between social media use and depression in young adults. The study, conducted by researchers at the University of Pennsylvania, surveyed over 1,000 participants aged 18-22 and found that those who spent more time on social media platforms like Facebook, Instagram, and Snapchat were more likely to report feelings of depression and loneliness.
The researchers found that the more time participants spent on social media, the more likely they were to compare themselves to others and feel inadequate. This comparison led to feelings of low self-esteem and depression. Additionally, the study found that those who engaged in social media activities such as scrolling through their newsfeeds late at night were more likely to experience sleep disturbances, which can also contribute to feelings of depression.
One of the most concerning findings of the study was that the link between social media use and depression was strongest among those who already had a predisposition to mental health issues. This suggests that individuals who are already vulnerable to depression may be at an increased risk when using social media.
The researchers also found that the type of content consumed on social media played a role in the link to depression. Participants who frequently viewed photos of their peers engaged in social activities or appearing highly successful were more likely to feel inadequate and depressed. On the other hand, those who used social media to connect with friends and family in a meaningful way reported higher levels of well-being.
These findings highlight the importance of being mindful of how we use social media and the potential impact it can have on our mental health. It’s crucial for individuals to be aware of the negative effects of excessive social media use and to take steps to limit their time on these platforms.
In light of these findings, mental health professionals are urging young adults to approach social media with caution and to prioritize real-life connections and activities that promote well-being. Taking breaks from social media, setting boundaries for use, and engaging in offline activities that bring joy and fulfillment are all recommended strategies for maintaining mental health in the digital age.
Overall, this study serves as a wake-up call for the harmful effects of social media on mental health and underscores the need for individuals to be proactive in protecting their well-being in an increasingly connected world. By being mindful of our social media use and prioritizing self-care, we can mitigate the negative impact of these platforms on our mental health and lead happier, healthier lives.
