The bank said revenues are expected to be €6.4 billion with noninterest expenses of €5.6 billion, including contributions to the Single Resolution Fund of €500 million. Deutsche said it has provided €500 million for credit losses. 

Deutsche Bank’s Common Equity Tier 1 ratio – a standard way for banks to measure their capital buffer - was 12.8 per cent at the end of March, down from 13.6 per cent at year end. The decline in the ratio was partly caused by the impact of the COVID-19 pandemic. The bank said it is reviewing its capital and leverage ratio targets because of the current economic environment and “elevated client demand”. 

“Management has made the clear decision to allow capital to fall modestly and temporarily below its target in order to support clients and the broader economy at this time of economic crisis,” the bank said.

The bank’s CET1 ratio of 12.8 per cent at quarter end was about 240 basis points above its pillar 2 regulatory requirement. This has been cut from 11.6 per cent at January 1, 2020 to 10.4 per cent, following the European Central Bank’s regulatory requirements in light of the COVID-19 pandemic.

“The short-term implications of the COVID-19 pandemic make it difficult for the bank to accurately reflect the timing and the magnitude of changes to its original capital plan. Deutsche Bank’s priority is to stand by its clients without compromising on capital strength,” Deutsche Bank added. 

“We are firmly committed to mobilizing our balance sheet to support our clients, who need us now even more. Our decision to do so means that our Common Equity Tier 1 ratio may temporarily dip below our target minimum of 12.5 per cent, without weakening our strong balance sheet. With our current ratio of 12.8 per cent, we are comfortably above our minimum requirement of 10.4 per cent. We’re convinced that this is in the best interests of all our stakeholders,” Christian Sewing, chief executive, said.