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Deutsche Bank DB reported fourth-quarter 2024 earnings attributable to its shareholders of €106 million ($113 million), down 92% year over year.
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The Germany-based lender reported a profit before tax of €583 million ($621.9 million), down 16.5% year over year. The reported figure included € 594 million ($633.6 million) of specific litigation items related to the Postbank takeover.
Results were negatively impacted by a rise in expenses. However, lower provision for credit losses and a strong capital position were tailwinds.
Deutsche Bank’s Revenues & Expenses
The bank generated net revenues of €7.2 billion ($7.7 billion), up 8% year over year. This upside was primarily driven by strong growth in commissions and fee income and broadly stable net interest income.
Non-interest expenses of €6.2 billion ($6.6 billion) increased 14% from the prior-year quarter. The rise was primarily due to an increase in general and administrative expenses.
Adjusted non-interest expenses (excluding nonoperating items) were € 5.3 billion, down 1% from the prior year quarter.
Provision for credit losses was €420 million ($448 million), down 14% from the prior-year quarter.
DB’s Segmental Performance
Corporate Bank: Net revenues for the segment were €1.9 billion ($2 billion), down 2% year over year. The results were hurt by lower net interest income, a decrease in Institutional Client Services and Business Banking revenues.
Investment Bank: This segment’s net revenues totaled €2.4 billion ($2.6 billion), up 30% year over year. The upside was primarily driven by growth across Fixed Income and Currencies, and Origination & Advisory.
Private Bank: Net revenues of €2.4 billion ($2.6 billion) were essentially flat year over year.
Asset Management: Net revenues of €709 million ($756.3 million) rose 22% year over year. An increase in performance and transaction fees led to the rise.
Corporate & Other: The segment reported negative net revenues of €99 million ($105.6 million) compared with negative $64 million in the prior-year quarter.
Deutsche Bank’s Capital Position
DB’s Common Equity Tier 1 capital ratio was 13.8% as of Dec. 31, 2024, up from the year-ago quarter’s 13.7%.
The leverage ratio on a fully loaded basis was 4.6%, up from the year-ago quarter's 4.5%.
DB’s 2025 Outlook
Deutsche Bank expects to achieve €32 billion ($34.1 billion) in revenues for 2025, reaffirming confidence in its revenue ambition. This aligns with its 2021-2025 CAGR target of 5.5-6.5%, supported by strong 2024 performance and continued execution of its growth strategy.
Provision for credit losses is projected to be in the range of €340-€400 million ($362.7– $426.7 million) per quarter.