Deutsche Bank Posts Record Profit Amid Broad-Based Growth, Shadowed by Fresh Legal Scrutiny
Deutsche Bank has delivered a powerful set of full-year results for 2025, with net profit almost doubling to €7.1 billion ($8.5bn) as a disciplined focus on costs and robust performance across its business lines bore fruit. The surge marks a significant milestone in the bank's ongoing turnaround effort.
Pre-tax profit jumped 84% year-on-year to €9.7 billion, while group revenues climbed 7% to €32.1 billion, meeting the bank's target. A key driver was a 10% reduction in noninterest expenses to €20.7 billion, largely attributed to the absence of major litigation charges that weighed on the previous year's figures.
The strong performance was broad-based. The Investment Bank saw net revenues rise 9% to €11.5 billion, with Fixed Income & Currencies leading the charge. The Asset Management unit (DWS) recorded its highest revenues since its 2018 IPO, up 16% to €3.1 billion, with assets under management surpassing €1 trillion. The core Private Bank division posted a 3% increase in net revenues to €9.7 billion, supported by steady net inflows that pushed assets under management to €685 billion.
"These record results validate our strategic focus and the resilience of our Global Hausbank model," said Chief Executive Christian Sewing. "We have met our financial targets and are on track to exceed our capital distribution commitments to shareholders."
However, the financial triumph arrives under a cloud. German federal prosecutors recently opened a money-laundering investigation, with officers searching Deutsche Bank offices in Frankfurt and Berlin. Media reports suggest the probe examines historical transactions tied to sanctioned Russian businessman Roman Abramovich.
A bank spokesperson confirmed the searches to Private Banker International, stating, "The bank is cooperating fully with the authorities." The case revives memories of past compliance struggles for the lender, even as its current financial health appears robust.
Market Voices
Klaus Fischer, Portfolio Manager at Rheinland Capital: "This is a textbook execution of a turnaround. Sewing has delivered on cost control while maintaining revenue momentum. The capital returns are a clear signal of regained strength, though the market will watch how the legal situation develops."
Anya Petrova, Senior Analyst at Finanz Watch: "The numbers are undeniably strong, particularly the revenue growth in FIC and Asset Management. However, one must question the sustainability. This level of cost reduction is not repeatable every year, and macroeconomic headwinds could pressure the top line soon."
Markus Weber, Independent Financial Commentator: "A record profit one day, a police raid the next. It's Deutsche Bank's never-ending story. How many 'fresh starts' and 'new chapters' can one bank have? These stellar figures are built on a foundation of avoiding last year's disasters. The Abramovich-linked probe shows the old ghosts are still in the vault."
Dr. Elena Schmidt, Economics Professor at University of Frankfurt: "The results demonstrate the bank's critical role in European finance. Its recovery contributes to systemic stability. The legal issues, while serious, appear focused on past activities. The key challenge now is to ensure current controls are impeccable to protect this hard-won financial success."