Deutsche Bank said late Sunday that it will beat analyst expectations and report a first-quarter profit as higher revenue and lower expenses have helped it offset a €500m charge it is taking for credit losses resulting from the coronavirus outbreak.

The German bank also said that because it is lending more to its customers, its balance sheet will increase along with risk, which could lead to a decline in its capital buffer ratio — known as CET1 — “modestly and temporarily” below its target of at least 12.5%. Its regulatory minimum after the European Central Bank eased some requirements, is 10.4%, the bank said.