Germany’s largest loan institution Germany On Thursday, the legal provisions weighed the conclusion, and the weaker profits fell sharply in the last three months in 2024.
Banks’ stocks listed in Frankfurt returned some losses to fall 1.9%from the beginning of the day.
Net profit from shareholders recorded 114 million euros ($ 114 million) in the fourth quarter, compared to the prediction of 2239 million euros in analysts’ LSEG polls. This resulted a significant decline in € 146.1 billion, achieved in the third quarter.
The annual net profit from shareholders was 2698 billion euros, down 36% from 2023.
The LSEG analyst polls accounted for 72.4 million euros in the fourth quarter compared to 72.4 million euros of LSEG analysts. In 2024, sales increased by 4% year -on -year to 3 billion euros.
Deutsche Bank CFO James von Moltke admitted that the bank had a very high level of non -operating costs in 2024.
“We are not satisfied with the one -time cost or surprise, and most of the things are actually … Past, sometimes the past, Postbank acquisition lawsuit in 2024 is a good example. Said.
“In a sense, the only good news you can talk about it is behind us. And what is important is that the company’s dangerous profile has changed dramatically.”
The bank said it is aiming for a cost income of less than 65% this year compared to the initial goals of less than 62.5%. Despite the decline in the quarterly profits, Deutsche Bank started repurchasing stocks of 750 million euros.
The other 4Q highlights are as follows:
- Tax transfer of € 583 million, down 17% from the previous year;
- Credit loss of 420 million euros, down 14% from the previous year;
- The CET 1 capital ratio, which is a measure of bank payment capacity, has not changed in 3Q to 13.8%.
Deutsche Bank has fallen in 2024 to 7.4% of the previous year’s tax return on the ratio of type ROTE, and was much lower than this year’s loan target this year.
Investment bank revenue shines in the fourth quarter.
The decline in the fourth quarter was frustrated by the lender who returned to black in 3Q after cutting profits for three months in the third quarter. Provide a lawsuit for postbank departments. Deutsche Bank started a 25 billion euro cost -saving drive after a post -financial crisis in 2019, with weak income for 10 years, and gradually grounds to add more than 30% last year to add more than 30% last year. It looks like.
The European bank, which was previously assigned by repurchase and high interest rate environment, must now compete with the partial loss of the support as the European Central Bank continues to ease the monetary policy last year. The ECB is expected to refine the fare once more at the late Thursday session.
“A strong tail wind from high interest rate is over. We think that banks are not only for net interest and income, but more focused on commission -based income, and those who have mergers and acquisitions are in a better position in 2025. Banks of Germany, Italy, Spain and France are mentioned in the bank prospect 2025.
Deutsche Bank has seen strong performance in the recent investment bank operation, which is the main driving force and core growth pillars of 3/4 sales during this period. Sales of investment banking departments increased by 30% year -on -year in the fourth quarter, and increased by 15% year -on -year to 15% year -on -year, up 15% year -on -year in 2024.
German banks are also overcoming political volatility this year before the storm of faint prospects for the largest economy in Europe and the next election in February.
“We also share the frustration of thinking that growth has been relatively stagnant over the past few years as we work through many items, energy costs, inflation, interest rates and something in Europe in Europe. “We want to see a policy mix that focuses on the growth and competitiveness of Europe.”
In Korea, Deutsche Bank was able to benefit from the uncertainty surrounding the fate of the second largest loan agency in Germany, and the Italian single combination created steaks since September to trigger the potential acquisition.
VON MOLTKE said in an interview with CNBC on Thursday that Deutsche Bank not only is looking for competition or benefits, but also evaluates the strategic ripple effect of “changes in our landscape,” which will be caused by a successful single red acquisition.
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The European Bank is under pressure to compete with the size, growth and profitability of US colleagues that Deutsche Bank has been investing steadily to strengthen the foothold. VON MOLTKE said on Thursday that Deutsch’s operation accounts for about 20%of measures, including loan conjugation and profits.
CNBC said, “This is the cumulative investment we reward. For example, we expect to benefit from the banker and corporate finance banking employment, so we will benefit from it, ”CNBC said. “Likewise, in terms of market, we are really making strategic investments and are already watching that payment.”
He added that the US business is still “there is room for conveying and determining the future.” After US President Donald Trump returned to the office, market participants now help White House leaders will help the White House leaders for a pledge of light touch regulations, and for the potential European loan institutions on banks and competitiveness operated in the US commercial space.
