In This Article:
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Revenue: Over EUR30 billion for 2024, a 4% year-on-year increase.
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Pre-Provision Profit: Increased by 19% compared to 2023, adjusted for specific items.
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Adjusted Costs: Decreased by 1% year on year to EUR20.4 billion.
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Litigation Costs: EUR1.7 billion across three specific items.
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Share Buyback Program: EUR750 million announced.
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Dividend Per Share: $0.68 for 2024.
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CET1 Ratio: 13.8% at year-end.
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Net Interest Income: EUR13.3 billion for 2024, expected to increase to EUR13.6 billion in 2025.
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Provision for Credit Losses: EUR1.8 billion for 2024, equivalent to 38 basis points of average loans.
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Assets Under Management: Surpassed EUR1 trillion for the first time, with net inflows of EUR42 billion.
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Cost-Income Ratio: Targeted below 65% for 2025.
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Return on Tangible Equity (RoTE): Target above 10% for 2025.
Release Date: January 30, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Deutsche Bank AG (NYSE:DB) reported a 19% increase in pre-provision profit for 2024 compared to 2023, demonstrating strong operating performance.
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The bank successfully delivered over EUR30 billion in revenue, surpassing initial 2025 targets, indicating strong franchise momentum.
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Deutsche Bank AG (NYSE:DB) announced a EUR750 million share buyback program and a dividend per share of $0.68, reflecting a commitment to capital returns.
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The bank's CET1 ratio remained robust at 13.8%, providing a solid foundation for future growth and capital distribution.
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Asset Management surpassed EUR1 trillion in assets under management for the first time, showcasing scale and competitiveness.
Negative Points
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Deutsche Bank AG (NYSE:DB) faced EUR1.7 billion in costs related to three specific litigation items, impacting reported results.
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The bank's cost-income ratio target for 2025 is set at below 65%, which is higher than the original target, indicating ongoing cost challenges.
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Noninterest expenses increased by 14% in Q4 2024 due to exceptional nonoperating and adjusted cost items.
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The Private Bank's return on equity remains low at 5%, highlighting the need for further transformation and efficiency improvements.
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Provision for credit losses was EUR1.8 billion for 2024, with expectations to remain at the higher end of the range in 2025 due to ongoing economic uncertainties.
Q & A Highlights
Q: Could you elaborate on the bridge to EUR32 billion of revenue target, and what gives you confidence in reaching this target? A: Christian Sewing, CEO, explained that the confidence stems from the strong foundation built over the past years and the positive feedback from clients across all business segments. The revenue growth is expected to come from EUR400 million in net interest income (NII) due to hedging and growth in fixed financing, EUR800 million from predictable businesses like Private Bank, Asset Management, and Corporate Bank, and EUR500-600 million from the Investment Bank, particularly in Origination & Advisory (O&A).