On January 30, 2025, Deutsche Bank reported a significant decline in profit for the fourth quarter of 2024, attributed to legal provisions. The bank’s net profit attributable to shareholders was 106 million euros ($110.4 million), falling short of analysts’ expectations of 282.39 million euros and down from 1.461 billion euros in the previous quarter.
- Deutsche Bank's Q4 profit fell sharply
- Net profit was 106 million euros
- Revenue reached 7.224 billion euros
- Legal provisions impacted financial results
- Target cost-income ratio set below 65%
- 750 million-euro share buyback announced
Deutsche Bank’s financial results for the fourth quarter of 2024 revealed a stark decrease in profitability, primarily due to legal expenses. The bank’s revenue was reported at 7.224 billion euros, slightly above the forecast of 7.125 billion euros, yet overshadowed by litigation costs totaling 594 million euros. The CFO, James von Moltke, noted that many of these costs stemmed from past issues, including the PostBank takeover litigation, which accounted for approximately 900 million euros in 2024.
Key financial highlights from Deutsche Bank’s report include:
- Profit before tax of 583 million euros, down 17% year-on-year.
- Provision for credit losses of 420 million euros, down 14% year-on-year.
- CET 1 capital ratio, a measure of bank solvency, at 13.8%, unchanged from the third quarter.
Despite the disappointing quarterly results, Deutsche Bank announced a 750 million-euro share buyback program. The bank has adjusted its cost-income ratio target for 2025 to below 65%, up from an initial goal of below 62.5%. This strategic shift aims to improve the bank’s financial health moving forward.
In summary, Deutsche Bank’s fourth-quarter profit decline highlights ongoing challenges related to legal costs. The bank’s strategic adjustments and share buyback initiative reflect efforts to stabilize its financial position as it navigates these issues.
