Deutsche Bank: results disappoint, costs worry

(CercleFinance.com) - Deutsche Bank reported a larger-than-expected drop in Q4 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 E337m in Q4, well under the E1.4bn aannounced a year ago.

Deutsche Bank says that it suffered from the non-recurrence of the recognition, in Q4 2023, of deferred tax assets (DTA) amounting to E1bn.

Analysts were expecting profit of around E573m.

Its adjusted costs reached E5.3bn in Q4, down 1% y-o-y, but up on the E5.05bn in Q3.

For 2025, Deutsche says it expects adjusted costs to be 'broadly stable' compared with 2024, for net banking income of around E32bn, compared with E30.1bn in 2024.

In terms of activity, income from private banking - which represented the largest source of income last year - fell by 2% to E9.57bn last year.

The financing division also contracted, with revenues down by 3% to E7.72bn, while revenues from investment banking rose by 15% to E9.16bn.

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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