Deutsche Bank beat analyst expectations when announcing its latest quarterly profits. Its net earnings for the first quarter of this year, €1.8bn, rose by 50% versus the previous year. This result was fuelled by a record-setting quarterly performance in its investment banking business.

Instead of celebrating this stellar result, the bank’s share price fell as investors fretted about the group’s business mix. With more than 90% of the bank’s pre-tax profit coming from its investment banking unit, Deutsche Bank appears dangerously exposed to regulatory changes that, at minimum, seem destined to hike capital requirements related to many risky activities inherent in investment banking. The bank’s capital ratios are already low compared with many of its main rivals—the subject of an analysis on this blog’s parent site (subscription required)—giving investors more cause for concern, despite the positive headline results.