Net revenues for the quarter were €9.6 billion, up 20% versus the first quarter 2006. In the Corporate and Investment Bank (CIB), revenues in Sales & Trading rose 16% to €5.1 billion, with record revenues in both Sales & Trading (Debt and other products) and Sales & Trading (Equity). Sales & Trading (Debt and other products) increased 20% to €3.4 billion, while Sales & Trading (Equity) rose 11% to €1.7 billion. Origination revenues rose 15% to €547 million, reflecting strong growth in high-yield debt origination, while revenues in Advisory improved 24% to record €251 million. In Global Transaction Banking (GTB), revenues grew 14% to €612 million.

In Private Clients and Asset Management (PCAM), revenues rose 3% versus the first quarter 2006 to €2.4 billion. In Private & Business Clients (PBC), revenues increased 9% to €1.4 billion, partly reflecting the consolidation of Berliner Bank and norisbank, while revenues in Asset and Wealth Management (AWM) were €1.0 billion, down 5%, partly reflecting lower gains and performance fees in Real Estate Asset Management than in the prior year quarter.

Revenues in Corporate Investments (CI) included €159 million arising from the sale of industrial holdings (predominantly Fiat), compared to a gain of €131 million in the prior year quarter from the sale of the bank’s remaining holding in EUROHYPO. CI revenues in the current quarter also included a gain of €178 million from the bank’s equity method investment in Deutsche Interhotel Holding. This triggered an impairment review of CI’s goodwill which resulted in an impairment charge of €54 million (recorded in noninterest expenses).

Provision for credit losses for the quarter was €98 million, compared to €9 million in the first quarter 2006. This development reflected substantially lower recoveries and releases in CIB than in the prior year quarter. Additionally, the current quarter reflected an increase in provisions following the consolidation of norisbank and Berliner Bank in PBC. IFRS impaired loans were €2.6 billion at the end of the quarter, down from €2.7 billion at the end of the fourth quarter 2006.

Noninterest expenses for the quarter were €6.3 billion, up 17% versus the first quarter 2006. Compensation and benefits for the quarter were €4.3 billion, up from €3.6 billion in the prior year quarter. This development included an increase in performance-related compensation in line with strong business results, consolidation of the aforementioned acquisitions, and accelerated amortization, under IFRS 2, of equity compensation for employees eligible for early retirement. Non-compensation expenses for the quarter were €2.0 billion, up from €1.8 billion in the prior year quarter. This development included the consolidation of acquisitions and the aforementioned goodwill impairment charge in CI, partly offset by lower restructuring charges.

The ratio of compensation and benefits to revenues for the quarter was 45%, unchanged from the prior year quarter, while the ratio of non-compensation expenses to revenues was 21%, down from 22% in the prior year quarter.

Income before income taxes for the quarter was €3.2 billion, up 22% versus the prior year quarter. Pre-tax return on average active equity was 45%, compared to 42% in the prior year quarter. Per the bank’s target definition, which excludes significant gains (net of related expenses) of €252 million in the current quarter and €131 million in the prior year quarter, pre-tax return on average active equity was 41% in the current quarter, compared to 40% in the prior year quarter.

Net income for the quarter was €2.1 billion, up 29% versus the prior year quarter. Diluted earnings per share were €4.28, up by €1.17, or 38%, versus the first quarter 2006. The increase of current quarter diluted earnings per share benefited from a reduction in the number of dilutive shares resulting from the modification of certain derivative contracts, related to trading in Deutsche Bank shares, in late 2006. Excluding this effect, the increase in diluted earnings per share over the prior year quarter would have been €1.02, or 31%. The effective tax rate was 33%, compared to 37% in the prior year quarter. The lower effective tax rate of the current quarter was mainly caused by recoverable taxes subsequent to decisions of the European Court of Justice regarding the non-conformity of certain German tax provisions with the European Community Treaty.

The BIS Tier I Ratio was 8.7% at the end of the quarter, up from 8.5% at the end of the fourth quarter 2006, and thus at the upper end of the bank’s target range of between 8% and 9%. Risk-weighted assets were €285 billion at the end of the quarter, an increase of €10 billion over the end of the previous quarter, mainly reflecting the growth in derivatives as well as the first time consolidation of Berliner Bank. During the quarter the bank repurchased 3.3 million shares for a total consideration of €341 million, at an average purchase price of €102.92 per share. At the Annual General Meeting in Frankfurt on 24 May, shareholder approval will be sought for further share repurchases, and for a 60% rise in the annual dividend to €4.00 per share.