Deutsche Bank: results disappoint, costs worry

(CercleFinance.com) - Deutsche Bank reported a larger-than-expected drop in fourth-quarter net income on Thursday, as the strength of its investment banking business was more than offset by a rise in costs.


Net income for Germany's leading banking group came to 337 million euros in the last three months of the year, compared with 1.4 billion euros a year earlier.

In a press release, Deutsche Bank recalls that it suffered from the non-recurrence of the recognition, in the fourth quarter of 2023, of deferred tax assets (DTA) amounting to one billion euros.

Analysts were expecting a profit of around 573 million euros.

Its adjusted costs reached 5.3 billion euros in the fourth quarter, down 1% year-on-year, but up on the 5.05 billion of the third quarter.

For 2025, Deutsche says it expects adjusted costs to be 'broadly stable' compared with 2024, for net banking income of around €32 billion, compared with €30.1 billion in 2024.

In terms of activity, income from private banking - which represented the largest source of income last year - fell by 2% to €9.57 billion last year.

The financing division also contracted, with revenues down by 3% to 7.72 billion, while revenues from investment banking rose by 15% to 9.16 billion.

Following this publication, Deutsche Bank shares were down nearly 4% late Thursday morning, posting one of the biggest declines on the pan-European STOXX Europe 600 index.

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