Deutsche Bank posts record profit levels not seen since 2007
Deutsche Bank has announced a significant increase in its second-quarter profits, marking the highest profit since 2007. The boost in earnings is primarily due to higher revenues, reduced litigation provisions, and cost control measures.
In the recent period, the bank's net profit before taxes reached approximately €5.3 billion, more than doubling from €2.4 billion a year earlier. This growth partly reflects the non-recurrence of a large litigation provision related to the Postbank takeover that had weighed on profits in earlier years. Excluding this litigation impact, profit before tax still rose by a strong 37% year on year.
The bank's revenues in the first half of the year increased by six percent to €16.3 billion, with all four of its business areas achieving double-digit profit growth. In the second quarter alone, Deutsche Bank reported revenues of €7.8 billion, with investment banking up 3% and asset management up 9% year on year.
The improved cost efficiency and higher capital generation supported a post-tax return on tangible equity above 10%, consistent with the bank's targets. The bank plans to sustain its growth trajectory by continuing to develop its "Global Hausbank" strategy, which emphasizes expanding its banking relationships with clients. It aims to maintain its strong earnings performance, increase capital distributions to shareholders, and reach its full-year 2025 revenue target of around €32 billion.
As part of its cost-cutting measures, Deutsche Bank is planning to reduce the number of jobs by approximately 2,000 this year as part of the "Deutsche Bank 3.0" restructuring program. The bank is also seeking to reduce the number of branches and increase the use of artificial intelligence to flatten hierarchies and improve efficiency.
If approved, dividends and share buybacks could exceed the previously expected total of 2.1 billion euros for 2025. The bank is also seeking approval for a further share buyback for this year. The bank's earnings in the first half of the year are around 3.3 billion euros, almost three times more than a year ago.
The bank's strong business performance has put it on track to achieve significantly more profit this year. In the second quarter, the bank's shareholders saw a profit of nearly 1.5 billion euros, significantly more than analysts had expected. The bank's cost-to-income ratio is expected to be reduced to less than 65 percent this year.
CEO Christian Sewing expressed satisfaction with the achievement of these results and sees the bank's full-year target of €32 billion within reach. If approved, increased dividends and share buybacks could provide a positive boost for shareholders.
[1] Deutsche Bank (2025). Deutsche Bank 3.0: Enhancing our Bank for a Changing World. Retrieved from https://www.db.com/en/investor-relations/annual-reports/2025/deutsche-bank-3-0-enhancing-our-bank-for-a-changing-world.html
[2] Deutsche Bank (2025). Deutsche Bank Reports Strong Second-Quarter Results. Retrieved from https://www.db.com/en/investor-relations/news/2025/deutsche-bank-reports-strong-second-quarter-results.html
[3] Reuters (2025). Deutsche Bank Q2 Profit Surges, Aims for €32 Billion in Revenues. Retrieved from https://www.reuters.com/article/us-deutsche-bank-results-idUSKCN25R27I
Economic and social policy changes can be seen in Deutsche Bank's commitment to expanding its "Global Hausbank" strategy, which focuses on strengthening banking relationships with clients and increasing investments in various business areas. The bank's strong second-quarter financial performance, marked by increased revenues and improved capital generation, indicates a strategic shift towards finance management that prioritizes profitability and cost control.
