Thank you for visiting, don't forget to subscribe by following here if you enjoy our content. We use follow.it to give you maximum control over your news.
Deutsche Bank’s profits have experienced a dramatic 92 per cent decline in the last quarter, prompting Chief Executive Christian Sewing to announce a comprehensive review of the bank’s operations where “nothing is off limits”. The German banking giant’s net profit fell to €106 million, significantly below analysts’ expectations of €380 million.
The sharp decline in profits has been attributed to a €329 million impact from a mis-selling scandal in the Polish residential mortgage market. The bank’s shares responded negatively to the news, dropping 6 per cent in early trading.
Sewing has labelled 2025 as a “year of reckoning” and expressed his vision for Deutsche Bank to emerge as “the European champion”. The bank’s cost-to-income ratio target has been adjusted to 65 per cent for the current year, marking a deviation from its previous target of 62.5 per cent, though still representing an improvement from the 76 per cent recorded in 2024.
Despite these challenges, the bank’s investment division showed remarkable resilience, with revenues surging 30 per cent due to strong performance in fixed income and currency trading. However, both corporate clients and retail divisions experienced slight revenue declines in the fourth quarter.
Looking ahead, Deutsche Bank has announced a new share buyback programme worth €750 million and proposed a dividend increase to €0.68 per share, up from €0.45 in 2023. The total shareholder payout for 2024 is set to reach €2.1 billion, with Chief Financial Officer James von Moltke projecting basic earnings per share to at least double in 2025.
The bank maintains its ambitious target of achieving returns on tangible equity exceeding 10 per cent in 2025, despite falling to 4.7 per cent last year. However, analysts at Citibank have expressed scepticism about reaching this target, highlighting the increasing challenges facing the German lender. Oi
Post Disclaimer
The following content has been published by Stockmark.IT. All information utilised in the creation of this communication has been gathered from publicly available sources that we consider reliable. Nevertheless, we cannot guarantee the accuracy or completeness of this communication.
This communication is intended solely for informational purposes and should not be construed as an offer, recommendation, solicitation, inducement, or invitation by or on behalf of the Company or any affiliates to engage in any investment activities. The opinions and views expressed by the authors are their own and do not necessarily reflect those of the Company, its affiliates, or any other third party.
The services and products mentioned in this communication may not be suitable for all recipients, by continuing to read this website and its content you agree to the terms of this disclaimer.