Deutsche Bank (DBKGn.DE) posted a surprise net profit in the first quarter, helped by lower litigation costs, sending its share sharply higher in pre-market trading.
Quarterly net income fell 58 percent to 236 million euros ($267.5 million) as its investment bank slumped in volatile markets and as it exited certain businesses but beat analysts’ average expectation for a net loss of 249 million euros.
“2016 will be the peak year for our restructuring efforts,” Chief Executive John Cryan said in a statement, after having urged investors earlier this year be patient with his revamp of Germany’s largest lender.
Shares were indicated 3.9 percent higher in a broadly flat market.
Investment banking revenues dropped 23 percent in the first quarter as sliding commodity prices, worries about the Chinese economy and the low interest rate environment kept clients from trading, investing or issuing new securities. European peers like Barclays and U.S. rivals like Goldman Sachs had suffered similar trends in their investment banking activities.
Deutsche Bank had already indicated in March that it expected weak results in investment banking in the first three months, normally a strong season for banks.