Deutsche Bank, in its latest annual report published on Thursday, anticipates an increase in revenue this year at its investment bank and main business units, despite challenges in the German market and the auto sector. The bank's outlook for 2025, its most detailed projection to date, emphasizes CEO Christian Sewing's efforts to achieve ambitious profit and cost targets.
While last year showed revenue growth, overall profitability declined due to higher bonuses and salaries for bankers, as revealed in the annual report. Analysts remain skeptical that Deutsche will achieve all its objectives as the U.S. economy might slow down, contrasting with potential growth in the euro zone, although Germany is expected to lag behind.
Deutsche Bank considers the automotive industry a significant risk, given the challenges of U.S. tariffs, a slow shift to electric vehicles, economic difficulties, and competition from China. Another historical risk area for the bank has been commercial real estate, with ongoing issues but signs of stabilization.
In 2024, Deutsche Bank's bonus pool increased by about 25% to 2.5 billion euros, fueled by a 15% growth in revenue at the investment bank. CEO Sewing earned an estimated 9.75 million euros in 2024, reflecting an increase from the previous year. The bank's total employee compensation reached 11.1 billion euros in 2024, rising approximately 8% from the year before. The highest-paid employee at Deutsche Bank received between 17 million euros and 18 million euros.