{"id":39228,"title":"Deutsche Bank Profits Plummet as CEO Declares Nothing Off Limits in Strategic Review","publisher":"Stockmark.IT","author":"Stockmark.IT Website","published":"2025-02-01T04:24:22+00:00","modified":"2025-01-31T06:26:55+00:00","canonical_url":"https://stockmark.it/deutsche-bank-profits-plummet-as-ceo-declares-nothing-off-limits-in-strategic-review/","markdown_url":"https://stockmark.it/deutsche-bank-profits-plummet-as-ceo-declares-nothing-off-limits-in-strategic-review.md","json_url":"https://stockmark.it/deutsche-bank-profits-plummet-as-ceo-declares-nothing-off-limits-in-strategic-review.json","category":"Banking","categories":["Banking","Investment"],"featured_image":"https://i0.wp.com/stockmark.it/wp-content/uploads/stencil.default-2025-01-31T062627.739.jpg?fit=1200%2C800&quality=89&ssl=1","format":"news","language":"en-GB","content":"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.\n\nThe 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.\n\nSewing 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.\n\nDespite 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.\n\nLooking 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.\n\nThe 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"}