Record First Quarter Profits in Over a Decade for Deutsche Bank
Highest Quarterly Profit in 14 Years Registered by Deutsche Bank - Banking institution Deutsche Bank records highest quarterly earnings in over a decade
Christian Sewing, Deutsche Bank's CEO, expressed his satisfaction with the bank's Q1 2025 earnings, touting a 10% increase in revenue to a whopping €8.5 billion and a decrease in costs.
All business sectors registered profit gains compared to Q1 2024, with wealth management standing out with a staggering 67% surge in pre-tax profits, amounting to €204 million. The corporate bank, on the other hand, expanded by a mere 3% to €632 million, while the private and commercial bank upped its pre-tax profits by 43% to €490 million. The investment bank made a notable contribution to Deutsche Bank's profits, with a 22% increase to €1.5 billion.
In a move set to impact its workforce, Deutsche Bank announced plans to phase out 2,000 jobs in its retail business this year. This action will affect both Deutsche Bank and its subsidiary, Postbank, resulting in a reduction in the number of branches from 550 to 300 by 2026.
Key Performance Highlights
- Profit Before Tax: A 39% year-over-year increase to €2.8 billion.
- Revenue Growth: A 10% year-over-year net revenue increase.
- Cost Discipline: Non-interest expenses saw a 2% reduction, resulting in a cost/income ratio improvement to 61.2%.
- RoTE and RoE: Achieved a post-tax RoTE of 11.9% and an RoE of 10.6%, both meeting or surpassing full-year targets.
- Revenue Incremental Growth: Delivered €0.7 billion of the promised €2 billion incremental revenue growth for 2025.
- Capital Optimization: Achieved €4 billion in RWA efficiency through data and process improvements and a securitization transaction.
Despite facing hurdles due to macroeconomic conditions and trade tensions, Deutsche Bank appears poised to meet its 2025 objectives, which involve:
- Achieving a post-tax Return on Tangible Equity (RoTE) of more than 10%.
- Keeping the cost/income ratio below 65%.
- Aiming for around 5.5-6.5% compound annual growth rate (CAGR) in revenues from 2021 to 2025.
- Focusing on operational efficiency improvements, reductions in risk-weighted assets (RWA), and maintaining flat operating costs for the full year.
Frankfurt am Main, Germany
CEO: Christian Sewing
- The European Parliament, the Council, and the Commission have been closely monitoring Deutsche Bank's performance, particularly its record-breaking Q1 profits in 2025, which marks a significant improvement since Q1 2024.
- In light of Deutsche Bank's impressive profits, the postbank subsidiary, along with the main bank, is expected to undergo significant changes, with plans to cut 2,000 jobs in 2025 and reduce the number of branches from 550 to 300 by 2026.
- In the financial industry, Deutsche Bank has recorded substantial gains across all business sectors in Q1 2025, with wealth management leading the way with a 67% surge in pre-tax profits.
- The Council, the European Parliament, and the Commission will be interested to note that Deutsche Bank's profit before tax increased by 39% year-over-year, while revenue growth amounted to a 10% year-over-year net increase.
- As Deutsche Bank continues to face challenges due to macroeconomic conditions and trade tensions, the bank remains committed to meeting its 2025 objectives, including achieving a post-tax Return on Tangible Equity (RoTE) of over 10%, maintaining the cost/income ratio below 65%, and focusing on operational efficiency improvements.