Deutsche Bank Surpasses Q4 Profit Forecasts Amid Regulatory Scrutiny
Frankfurt, Germany – Deutsche Bank reported a robust net profit attributable to shareholders of 1.3 billion euros ($1.56 billion) for the fourth quarter, significantly outperforming analyst forecasts of 1.12 billion euros.
Group revenues for the three-month period ending December reached 7.73 billion euros, closely aligning with LSEG's estimate of 7.72 billion euros.
Q4 Financial Performance Highlights
The bank's CET 1 capital ratio, a key indicator of solvency, stood at 14.2% for the fourth quarter. This represents a slight decrease from 14.5% in the previous quarter but an increase from 13.8% in the same period of 2024.
Credit impairment, which measures the negative impact of credit losses on a loan portfolio, was 395 million euros. This figure was notably lower than the 408.3 million euros predicted by analysts and marked a reduction from 417 million euros in the third quarter.
Management Commentary and Future Outlook
James Von Moltke, Deutsche Bank's chief financial officer, attributed the strong results to exceptional performance in the bank's fixed income and currencies businesses, as well as its asset management unit DWS. Growth was also observed in the private banking business. In contrast, corporate activity, investment banking, and capital markets experienced slower performance in 2025.
Von Moltke expressed optimism for the performance of all four of the bank's businesses in 2026 and anticipated growth in the IPO pipeline.
He highlighted current 'risk on' sentiment in the market, suggesting that, absent disruptive events, markets are constructive. He further stated that the corporate banking business is positioned to benefit from Germany's fiscal expansion.
Money Laundering Probe and Bank's Response
The fourth-quarter earnings announcement occurred just one day after German federal prosecutors initiated a probe into alleged money laundering at Deutsche Bank. Law enforcement officials searched the bank's offices in Frankfurt and Berlin as part of the investigation.
Von Moltke confirmed the bank's full cooperation with investigators. While declining to comment on specific client transactions, he acknowledged reports indicating transactions dating back to 2013 and 2018.
He explained that the investigation pertains to the potentially late or delayed filing of suspicious activity reports, which may form a predicate for money laundering.
He emphasized that Deutsche Bank has made significant investments in financial crime risk management capabilities since these past transactions.