Deutsche Bank shares popped to a more than six-year high on Thursday afternoon, after the German lender reported a 10% rise in first-quarter profit, beating expectations amid an ongoing recovery in its investment banking unit.

After declining in the morning, shares were up 7.2% at 1:27 pm in London, hitting the highest intraday level since December 2017, according to LSEG data.

Net profit attributable to shareholders was 1.275 billion euros ($1.365 billion) for the period, ahead of an aggregate analyst forecast of 1.23 billion euros for the period, according to LSEG data.

Deutsche Bank said this was its highest first-quarter profit since 2013. It also marks the bank’s 15th straight quarterly profit.

Group revenue rose 1% year-on-year to 7.8 billion euros, which the bank attributed to growth in commissions and fee income, along with strength in fixed income and currencies. The revenue print also came in ahead of an analyst forecast of 7.73 billion euros, according to LSEG.

Revenues at its investment bank increased 13% to 3 billion euros, following a 9% slump through full-year 2023 which had dragged down overall profit. The performance restores the division as Deutsche Bank’s highest-earning unit on growth in financing and credit trading revenue.

Other first-quarter highlights included:

  • Net inflows of 19 billion euros across the Private Bank and Asset Management divisions.
  • Credit loss provision was 439 million euros, down from 488 million in the fourth quarter of 2023.
  • Common equity tier one (CET1) capital ratio — a measure of bank solvency — was 13.4%, compared to 13.6% at the same time last year.

“There’s momentum in the businesses, actually across all four businesses, and we do think it’s sustainable,” Deutsche Bank Chief Financial Officer James von Moltke told CNBC’s Annette Weisbach on Thursday.

“We’re delivering on our commitments on costs and capital returns in the quarter.”

Germany’s biggest lender reported net profit of 1.3 billion euros in the prior quarter and of 1.16 billion euros in the first quarter last year.

In 2023, the bank announced it would cut 3,500 jobs over the coming years, as it targets 2.5 billion euros in operational efficiencies to boost profitability and increase shareholder returns.

In a research note Thursday, analysts at Keefe, Bruyette & Woods called the group results “reasonable” but “nothing special,” highlighting strong investment bank figures but underperformance in its corporate bank and asset management divisions.

Credit losses remained elevated while guidance was unchanged despite the higher interest rate expectations, they added.

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