The German lender said it expects to report a fall in net income in the first quarter from a year ago and warned it might miss its capital target as a result of the coronavirus pandemic.
Deutsche Bank also said Sunday that its common equity tier 1 ratio — a metric of bank solvency — fell to 12.8% at the end of the first quarter, from 13.6% at the end of 2019.
"The decline in the CET1 ratio in the quarter included approximately a 30 basis points negative impact from the revised securitization framework and approximately 40 basis points of items precipitated by the Covid-19 pandemic," the lender said in its statement."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," it said.
The German bank also said that it is "unlikely" it will reach its 2020 fully-loaded leverage ratio target of 4.5%. This metric measures a bank's financial health. However, it reaffirmed other financial targets for the year, such as adjusted costs and reimbursable expenses associated with the transfer of the Prime Finance platform to BNP Paribas.
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