In Frankfurt on Thursday, the CEO of Deutsche Bank acknowledged that the profit decrease in the fourth quarter and full year was more substantial than anticipated. Despite challenges such as legal provisions and restructuring costs diluting investment banking revenue gains, the bank revealed plans to repurchase €750 million ($780.90 million) in shares.
CEO Christian Sewing emphasized the importance of 2025 as a critical year for the bank's transformation and growth strategy. He also hinted at the possibility of closing some businesses as part of the bank's strategic adjustments for 2026 and beyond, quoting, "Nothing is off limits."
Deutsche Bank has revised its cost-to-income ratio target to below 65% for the year, signaling a shift in focus towards investments. The bank's financial performance fell short of analyst expectations, with net profits for both the fourth quarter and the full year below anticipated figures.
Although Deutsche Bank achieved profitability for the fifth consecutive year, concerns remain over escalating costs impacting its overall performance. The bank's operations span globally, yet a stagnant home economy in Germany poses challenges, exacerbated by looming national elections.
Noteworthy costs incurred by Deutsche Bank in the fourth quarter include significant provisions for litigation related to foreign currency loans in Poland and restructuring and severance expenses. Despite a 30% increased revenue in the investment bank, the retail and corporate divisions experienced varying declines in revenue.
Overall, amidst a challenging financial landscape and looming uncertainties, Deutsche Bank faces the imperative to navigate strategic shifts for sustained growth and profitability.