Experts project a 10% increase in pre-tax profits for the initial quarter of 2024, boosting earnings to €2.0 billion at our specific site.
Deutsche Bank has demonstrated a robust performance in the first half of 2025, making significant strides towards the strategic targets it has set for the year. Here are some key points:
Revenue and Profit Growth
The bank reported a net banking income of €16.3 billion in the first half of 2025, marking a 6% increase year-on-year. This growth is in line with the bank's full-year target of around €32 billion. Profit before tax more than doubled to €5.3 billion in H1 2025 from €2.4 billion in H1 2024. Net profit increased to €3.7 billion, compared to €1.5 billion a year earlier.
Cost Reduction and Efficiency
Deutsche Bank has made significant progress in reducing costs and improving efficiency. Noninterest expenses fell 15% year-on-year to €10.2 billion, resulting in a cost/income ratio of 62%. The bank has achieved about 90% of its €2.5 billion cost efficiency target. Adjusted costs remained roughly flat year-on-year when excluding litigation impacts.
Capital Efficiency Targets
The bank's capital ratios are strong, with the return on tangible equity (RoTE) reaching 11%, surpassing its above-10% target for 2025. The bank’s CET1 capital ratio stood at a strong 14.2%, supporting capital deployment for business growth and shareholder returns. The leverage ratio was 4.7%.
Strategic Outlook
CEO Christian Sewing confirmed that the bank is on track to meet its 2025 targets, including improving profitability, operational efficiency, and capital generation. The bank is focused on growing the Global Hausbank franchise and increasing distributions to shareholders beyond 2025.
Challenges
Despite the strong performance, there are pressures such as commercial real estate provisions in the US West Coast and slightly weaker fee and commission income growth than expected. The corporate bank revenue outlook was slightly downgraded due to FX impacts and lower loan growth, with a heavier reliance on trading revenues.
Sustainable Financing and Investment
Deutsche Bank's cumulative total of sustainable financing since January 1, 2020 is €59 billion in Corporate Bank, €62 billion in Private Bank, and €179 billion in Investment Bank. The bank's cumulative ESG-related financing and investment volumes reached €300 billion in Q1 2024.
Upcoming Events
A fixed income investor call will take place on April 26, 2024, at 15:00 CEST. An analyst call to discuss first-quarter 2024 financial results will take place at 11:00 CEST. Further details on first quarter performance in the bank's businesses are available in the Earnings Report of March 31, 2024.
[1]: [Link to Source 1] [2]: [Link to Source 2] [3]: [Link to Source 3] [4]: [Link to Source 4]
- Deutsche Bank's sustainable finance initiatives are thriving, with the bank having cumulatively financed €59 billion in Corporate Bank, €62 billion in Private Bank, and an impressive €179 billion in Investment Bank as of January 1, 2020.
- As part of its strategic focus on wealth management, Deutsche Bank's Private Bank sector has reported a significant contribution to the bank's overall performance.
- In the realm of asset management, Deutsche Bank's business strategy is geared towards growth, strengthening its Global Hausbank franchise and increasing distributions to shareholders beyond 2025, in line with its strategic outlook.
