Profits rise at DAX companies despite falling revenues

The 40 German companies listed on the DAX reported higher profits in the first quarter. Revenues fell by an average of 3.7 percent, while earnings before interest and taxes rose by 4.4 percent.

According to an analysis by consulting firm EY, the financial sector in particular benefited from the development. It recorded a record profit increase of 15.9 percent. Industrial companies, by contrast, grew by only 0.5 percent.

Deutsche Telekom achieved the highest quarterly profit at 5.8 billion euros, followed by Allianz with 4.5 billion euros and E.ON with 3.9 billion euros. E.ON, Siemens Energy and Munich Re posted particularly strong growth.

Henrik Ahlers, Chairman of the Executive Board at EY, said: “Despite the economic slowdown, the financial sector is posting very strong figures.” All car manufacturers listed on the DAX, however, reported falling profits.

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Deutsche Bank reported a first-quarter net profit of 1.9 billion euros, up about eight percent from the previous year and beating analyst expectations. CEO Christian Sewing praised the results as a strong start to the new strategy phase. Shares dropped more than two percent anyway.

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The Dax stands near 24,200 points, almost unchanged since the start of the year. Rising earnings estimates have lowered the benchmark's valuation. Investors wonder if this makes an entry point attractive now.

Germany's DAX index fell 1.1 percent on Thursday, closing at 23,807 points. Investors are wary of the fragile two-week ceasefire in the Iran war and Israeli airstrikes in Lebanon. US Federal Reserve minutes are also weighing on sentiment.

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Seoul shares opened higher on Tuesday, propelled by Samsung Electronics' record first-quarter earnings. The benchmark KOSPI rose 2.47 percent to 5,584.76 in the first 15 minutes of trading. Strong demand for AI-related chips drove the profit surge.

 

 

 

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