Well, according to Green, the 109B-1 with fixed-pitch wooden prop. was good for 292 m.p.h. at 13,100 ft. The B-2 was fitted with a licence-built Hamilton variable pitch metal prop. Some B-2s had the Jumo 210E with two stage supercharger, but most had the Jumo 210G giving 670 h.p.
It was found that the Soviet supplied i-15 outperformed the Heinkel He 51 biplanes of the Condor Legion in Spain, but the 109B-1s and B-2s sent there redressed the balance and proved 'highly successful'. They were mainly used for bomber escort and the occasional sweep over Republican airfields. Oberstleutnant Harder built up quite a score in Spain using the early 'B' 109s. It was effective against Russian fighters, with one major shortcoming - inadequate armament. Three light 7.9 mm machine guns provided insufficient range and weight of fire, so tests of a 20 mm cannon armed version began - but that demanded a strengthened wing which increased weight, so its introduction was delayed.
One B-2 was experimentally fitted with a DB 600A producing 960 h.p. and this boosted max speed to 323 m.p.h. This became the basis for the 109D version. Top speed rose to 350 m.p.h at rated altitude in the early E model fitted with a 1,100 h.p. DB601A.
So, I guess, in direct answer to your question, yes, the early 109s were much slower than what we are used to in a WW2 context. But then, they had barely two thirds of the engine power.