Stock Markets January 29, 2026

Deutsche Bank Posts Record Q4 Pre-Tax Profit as Police Probe Overshadows Results

Strong fourth-quarter earnings driven by broad client franchise and asset management gains; federal searches raise regulatory questions

By Avery Klein
Deutsche Bank Posts Record Q4 Pre-Tax Profit as Police Probe Overshadows Results

Deutsche Bank reported a record 2.0 billion euros in pre-tax profit for Q4 2025, driven by strength in its integrated client model and a sizable rise in asset management revenue. Net profit for the quarter was 1.6 billion euros, and the bank said 2025 net profit doubled to 7.1 billion euros. The results were released one day after German federal police searched the bank's Frankfurt and Berlin offices in a money laundering investigation.

Key Points

  • Deutsche Bank reported a record Q4 2025 pre-tax profit of 2.0 billion euros and quarterly net profit of 1.6 billion euros, up significantly from the prior year.
  • The bank credited its Global Hausbank model and cited a 16% revenue increase in asset management and a 9% rise in investment banking revenues for 2025; corporate banking revenues fell 1%.
  • Despite robust results, German federal police searched Deutsche Bank offices in Frankfurt and Berlin in a money laundering investigation involving unidentified individuals and some bank employees, marking another development in a series of past allegations.

Deutsche Bank recorded a record-high pre-tax profit of 2.0 billion euros for the fourth quarter of 2025, according to results released on Thursday. That figure compares with 583 million euros in the same quarter a year earlier. Net profit for the quarter rose to 1.6 billion euros, up from 337 million euros a year ago.

The bank attributed the strong quarterly performance to its "Global Hausbank" model, noting that the approach - which offers both retail and institutional clients an array of banking and wealth management services - underpinned the improved results.

For the full year, Deutsche Bank said net profit doubled to 7.1 billion euros in 2025. Several business units contributed to the annual improvement: asset management reported a 16% increase in revenue versus the prior year, investment banking revenues rose by 9% in 2025, while corporate bank revenues slipped by 1%.

Alongside the earnings, the bank proposed a 2025 dividend of 1 euro per share and authorized a 1 billion euro share buyback.


These financial disclosures came as German federal police conducted searches of Deutsche Bank offices in Frankfurt and Berlin on the day prior to the earnings release. Authorities said the raids were part of an investigation linked to allegations of money laundering.

Reports accompanying the searches indicated that prosecutors are probing unidentified individuals and some bank employees. The searches were described as the latest episode in a string of allegations of money laundering lapses at Germany's largest bank over the last decade.

The juxtaposition of record profits and an active law enforcement inquiry leaves the bank navigating both strong operating momentum and legal scrutiny. Management highlighted the diversified client-facing model and gains in asset management and investment banking as drivers of the profit improvement, while the police action focuses attention on compliance and oversight questions raised by investigators.

Deutsche Bank's published figures show a quarter of marked improvement in profitability, balanced against the immediate reputational and regulatory implications of the ongoing probe.

Risks

  • Ongoing law enforcement investigation into alleged money laundering could create regulatory, legal and reputational risks for the bank - impacting the financial and compliance sectors.
  • Potential scrutiny of internal controls and employee conduct as prosecutors investigate unidentified individuals and bank staff - a risk to corporate governance and human-resources-sensitive operations.
  • Economic exposure in corporate banking, where revenues declined 1%, could weigh on certain client segments despite gains in asset management and investment banking.

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