Deutsche Bank (DB Quick QuoteDB - Free Report) reported fourth-quarter 2024 earnings attributable to its shareholders of €106 million ($113 million), down 92% year over year.

Find the latest earnings estimates and surprises on the Zacks Earnings Calendar.

The Germany-based lender reported a profit before tax of €583 million ($621.9 million), down 16.5% year over year. The reported figure included € 594 million ($633.6 million) of specific litigation items related to the Postbank takeover.
 
Results were negatively impacted by a rise in expenses. However, lower provision for credit losses and a strong capital position were tailwinds.

Deutsche Bank’s Revenues & Expenses

The bank generated net revenues of €7.2 billion ($7.7 billion), up 8% year over year. This upside was primarily driven by strong growth in commissions and fee income and broadly stable net interest income.

Non-interest expenses of €6.2 billion ($6.6 billion) increased 14% from the prior-year quarter. The rise was primarily due to an increase in general and administrative expenses.

Adjusted non-interest expenses (excluding nonoperating items) were € 5.3 billion, down 1% from the prior year quarter.

Provision for credit losses was €420 million ($448 million), down 14% from the prior-year quarter.

DB’s Segmental Performance

Corporate Bank: Net revenues for the segment were €1.9 billion ($2 billion), down 2% year over year. The results were hurt by lower net interest income, a decrease in Institutional Client Services and Business Banking revenues.

Investment Bank: This segment’s net revenues totaled €2.4 billion ($2.6 billion), up 30% year over year. The upside was primarily driven by growth across Fixed Income and Currencies, and Origination & Advisory.

Private Bank: Net revenues of €2.4 billion ($2.6 billion) were essentially flat year over year.

Asset Management: Net revenues of €709 million ($756.3 million) rose 22% year over year. An increase in performance and transaction fees led to the rise.

Corporate & Other: The segment reported negative net revenues of €99 million ($105.6 million) compared with negative $64 million in the prior-year quarter.

Deutsche Bank’s Capital Position

DB’s Common Equity Tier 1 capital ratio was 13.8% as of Dec. 31, 2024, up from the year-ago quarter’s 13.7%.

The leverage ratio on a fully loaded basis was 4.6%, up from the year-ago quarter's 4.5%.

DB’s 2025 Outlook

Deutsche Bank expects to achieve €32 billion ($34.1 billion) in revenues for 2025, reaffirming confidence in its revenue ambition. This aligns with its 2021-2025 CAGR target of 5.5-6.5%, supported by strong 2024 performance and continued execution of its growth strategy.

Provision for credit losses is projected to be in the range of €340-€400 million ($362.7– $426.7 million) per quarter.

Our Viewpoint on Deutsche Bank

A strong balance sheet position and revenue growth will likely support Deutsche Bank's financials. Also, the company’s strong capital position aids sustainable capital distribution moves. However, an elevated expense base is likely to hurt its bottom-line growth.

The company currently has a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Earnings Dates of Other Foreign Banks

Barclays (BCS Quick QuoteBCS - Free Report) is expected to report fourth-quarter and 2024 results on Feb. 18.

Over the past seven days, the Zacks Consensus Estimate for BCS’ 2024 earnings has remained unchanged at $1.53 per share, indicating a rise of 10.9% from the prior-year quarter.

HSBC Holdings (HSBC Quick QuoteHSBC - Free Report) is expected to announce fourth-quarter and 2024 results on Feb. 19.

Over the past seven days, the Zacks Consensus Estimate for HSBC’s 2024 earnings has remained unchanged at $6.67 per share, indicating a rise of 5.5% from the prior-year quarter.