Deutsche Bank Shares Soar 2.51% on 10% Revenue Growth

Deutsche Bank's share price surged to its highest level since November 2015 today, with an intraday gain of 2.51%.

The strategy of buying DB shares after they reached a recent high and holding for 1 week yielded moderate returns over the past 5 years, with a 4.46% annualized return and a 21.46% peak-to-trough gain. However, it underperformed the benchmark, which had a 7.46% annualized return and a 37.46% peak-to-trough gain. The strategy's beta of 1.14 indicates it was slightly more volatile than the benchmark. While the absolute returns were decent, the risk-adjusted returns, such as the Sharpe ratio (0.56) and Sortino ratio (0.67), suggest that the strategy's excess returns were modest relative to its volatility and downside risk.

Deutsche Bank's first-quarter results revealed a 10% revenue growth to EUR 8.524 billion, surpassing consensus estimates by 3%. This robust financial performance is likely to have a positive impact on the stock price, as investors respond favorably to the bank's improved earnings.

In addition to overall revenue growth, Deutsche Bank's revamped M&A business saw a significant 22% increase in revenues year-on-year in the first quarter of 2025. This strong performance in the M&A sector suggests that the bank's strategic initiatives are paying off, which could further boost investor confidence and drive the stock price higher.

Deutsche Bank Chief Executive Christian Sewing announced plans to seek a more ambitious target for a key profit metric in the future. This announcement indicates the bank's commitment to improving profitability, which could positively influence the stock price as investors anticipate better financial performance in the coming quarters.