Deutsche Bank on Thursday reported its largest annual profit since 2007, posting net profit attributable to shareholders of €6.12 billion for 2025 as a stronger-than-expected fourth quarter helped lift full-year results. The figure compares with €2.7 billion a year earlier and sits slightly above analyst estimates of nearly €6 billion.
The €6.12 billion result marks the sixth consecutive year of profitability for Germany's biggest lender after a period of substantial losses and intense regulatory scrutiny. It also brings to a close a three-year financial plan in which the bank achieved a key goal: delivering a return on tangible equity above 10%. Management has set a new target of 13% for 2028, a level analysts currently believe the bank may not reach.
"This gives us the strongest possible foundation for the next phase of our strategy," said Christian Sewing.
Quarterly performance and shareholder returns
For the fourth quarter, Deutsche Bank recorded net profit of €1.3 billion, a substantial rise from €106 million in the same period a year earlier and above analysts' expectations of about €1.12 billion. The bank also authorised €1 billion in share buybacks following the year-end results.
Looking to 2026, Deutsche Bank expects revenue to rise to around €33 billion, up from €32.1 billion recorded in 2025.
Division-level results
The global investment bank remained the top revenue contributor in the quarter, delivering a 5% increase in revenue roughly in line with expectations. Within that division, fixed-income and currency trading - one of the institution's largest businesses - posted a 7% rise in revenue, exceeding forecasts for a 4% gain. The same business recorded a 7% increase at JPMorgan and a 12% rise at Goldman in the comparable period.
Revenue growth in Deutsche Bank's other major divisions was more muted. The retail division's revenue rose 3%, marginally short of expectations for a 3.9% increase. The corporate bank saw revenue decline by 2%, versus analysts' projections of approximately a 1% fall.
Investigations and legal scrutiny
The bank's results were overshadowed by prosecutors' searches this week related to an alleged money-laundering probe, underscoring recurring compliance issues at Deutsche Bank over the past decade. Frankfurt prosecutors said they were investigating as-yet unidentified individuals and bank employees. Two people with knowledge of the matter told Reuters the inquiry involves transactions dated between 2013 and 2018. Deutsche Bank said it was cooperating with the authorities.
Outlook and external commentary
Ratings agency S&P said in a report last week that earnings at German banks are likely to continue improving beyond 2025, in part supported by increased lending related to government spending plans for infrastructure and defence. In December, S&P upgraded Deutsche Bank's outlook to positive.
The company disclosed currency context for readers: $1 = 0.8345 euros.
Analyst context and market reactions
Deutsche Bank's year-end result caps a three-year period in which the bank met a central profitability objective. Management has now shifted its focus to the next multi-year target, setting a return on tangible equity goal of 13% for 2028, a target that some analysts currently view as at risk. The combination of stronger trading revenues and continued regulatory and legal scrutiny will likely shape investor attention in the coming quarters.
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