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Deutsche Bank said that the profit of 92 percent had fallen in the last quarter and warned investors more than expected costs for this year, as the German Bank chief has committed to consider weaker companies to improve the effect.
CEO Christian Sewing said on Thursday that the Bank will discover a new medium -term strategy this year.
“We will explore whether we need the redistribution of parts of the capital invested or even give up one or the other area to better use our capital somewhere else,” he said, adding that “nothing is outside the borders.”
The net profit that can be attributed to shareholders has fallen to 106 million euros in the fourth quarter, which is a 92 percent reduction in the same period over the same period a year earlier and significantly below € 380 million, and analysts expect. The bank blamed a hit of EUR 329 million associated with a long -term wrong scandal in the Polish Housing Mortunity Market.
The German biggest lender said he had missed his goals in 2024 closely because he was hit by a sudden increase in litigation. The loan losses in the last three months of the year have been higher than analysts expected.
The shares fell 6 percent in early trading on Thursday.
The sewing called in 2025 “year of account”, adding that the bank wanted to “lay the foundation” to become a “European champion”. He said that Deutsche still aims to generate revenues of more than € 32 billion in 2025, adding that the lender launched a “strong beginning.
“Our clear ambition is to manage a bank with a lower number,” Rawing said, “and we want to start a much lean platform,” including cutting the management layers.
Deutsche On Thursday this year he relaxed his goal for costs – a key measure of efficiency – at 65 percent of revenue, compared to a previous goal of 62.5 percent of revenue. This would still be far better performance than a ratio of 76 percent that he reached in 2024.
Sewing He said he still had a “solid trust” that the lender would fulfill his goal of abolishing the yield to tangible capital to more than 10 percent in 2025, after they fell to 4.7 percent last year.
Andrew Coombs, an analyst from Citibank, wrote that reaching a 10 percent “looks” looks more challenging. ” On the eve of the results on Thursday, analysts expected a return of 8.9 percent to capital 2025.
Group revenue for the last quarter of 2024 increased by 8 percent to 7.2 billion euros, prompted by increasing the investment bank by 30 percent, as fixed income and currency trade increased. Two major lender units-corporate clients and retail arm-have suffered a slight drop in revenue in three months until December.
Sewing said that an annual profit-by-per-3-percent profit in the year to € 2.7 billion-palas mainly due to restructuring and legal costs, such as a provision of around 900 million euros, for a prolonged complaint about the price she paid for for the purchase of minority postbanci shareholders In 2010.
“We have now asked these inherited questions behind us and thus significantly reduced the risks for our bank forward,” he said.
The Bank announced a new share of a stake in the amount of EUR 750 million and proposed a dividend of 0.68 euros per share, compared to 0.45 euros for 2023. . James Von Moltke’s Chief Financial Director said the Bank expects basic earnings per share to at least double in 2025.
