By Tom Sims and Alexander Hübner
FRANKFURT (Reuters) -Deutsche Bank on Thursday forecast increased revenue this year at its investment bank and three other main business units, putting a brave face on 2025 prospects despite a weak economy in its home German market and troubles for the auto sector.
The outlook, published in its latest annual report, is the bank's most detailed projection yet for its expected performance in 2025.
Last year also saw revenue gains, but an overall drop in profit, amid significant rises in bonuses and banker pay that was also disclosed in Thursday's report for the first time.
This year is crucial for CEO Christian Sewing, who is striving to meet a series of ambitious profit and cost targets he has set for the once-troubled bank. Some analysts have been sceptical that Deutsche will reach all its goals.
The United States economy may slow slightly, while euro zone growth may accelerate, the nation's largest lender forecast.
"But Germany is expected to lag behind," Deutsche said.
The bank identified the automotive industry - a major sector for Germany with carmakers, such as Volkswagen and Mercedes-Benz - as a key risk.
The sector poses a "growing risk" to the bank's auto and supplier portfolio and is being "monitored closely" given potential U.S. tariffs, a challenging economy, a slow transition to electric vehicles and competition from China, Deutsche said.
Another key risk the bank has identified in previous years has been its exposure to the commercial real estate industry. Deutsche said problems still exist but that the sector is geared stabilise.
Deutsche Bank's bonus pool rose around 25% to 2.5 billion euros in 2024, the annual report revealed. Revenue at the dominant investment bank grew 15% in 2024 and was a main driver of the bonus pool's increase.
CEO Sewing earned an estimated 9.75 million euros ($10.61 million) for 2024. In 2023, he earned 8.75 million euros, but the figures are not directly comparable due to a change in the way bonuses are calculated.
The bank's employees earned 11.1 billion euros in 2024, up around 8% from the previous year.
Deutsche's highest-earning employee, who went unnamed, was compensated between 17 million euros and 18 million euros.
($1 = 0.9190 euros)
(Reporting by Tom Sims and Alexander Huebner, Editing by Rachel More and Tomasz Janowski)