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Shares in Deutsche Bank AG traded sharply lower on Wednesday despite a rise in the bank’s first-quarter profit, as a disappointing performance on costs came into focus.
The German lender’s
DB,
DBK,
costs were about 7% higher than expected, analysts at Barclays and Morgan Stanley flagged in research notes. Keeping costs contained is one of Deutsche’s main areas of focus, part of a plan to overhaul the bank launched in 2019.
At 0849 GMT, Deutsche Bank shares traded 6% lower at EUR9.51.
Deutsche Bank on Wednesday said after-tax profit rose to 1.23 billion euros ($1.31 billion) from EUR1.04 billion a year earlier, ahead of a company-compiled consensus forecast of EUR1.12 billion. Revenue rose 1% to EUR7.33 billion.
Costs fell 4% despite Deutsche Bank recognizing a 28% increase in annual bank levies in the quarter. However, they were still higher than consensus forecasts, mainly due to factors tied to compensation such as payroll inflation, Morgan Stanley analysts said.
Write to Cristina Roca at cristina.roca@wsj.com
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