Announcement from Christian Sewing Regarding Q2 Results 2025
Deutsche Bank, one of Germany's leading financial institutions, is looking ahead with optimism, driven by the potential of innovative technologies and a growing client base in Europe and beyond.
The bank's CEO, Christian Sewing, expressed gratitude for the extraordinary commitment of the bank's staff in the first half of the year, as they navigated a challenging economic environment marked by geopolitical tensions and discussions about tariffs and global trade relations.
Despite these challenges, Deutsche Bank has reported impressive financial results for the first half of the year. Pre-tax profit more than doubled to 5.3 billion euros, and revenues increased by 6 percent year on year to 16.3 billion euros. All four divisions of the bank - Corporate Bank, Investment Bank, Private Bank, and Asset Management - reported double-digit profit growth.
The bank's strong figures demonstrate its stability, reliability, and determination to move forward with its clients. The bank's CET 1 capital ratio stands at 14.2 percent, and its return on tangible equity (RoTE) for the first half of the year is 11 percent, putting it on track to achieve its annual target.
Looking beyond 2025, Deutsche Bank is focusing on becoming more focused, efficient, and powerful. The bank aims to consolidate profitable growth and resilience by operational excellence, capital discipline, targeted client-centric investments, and strategic positioning as a key wealth and capital markets provider in Europe and globally.
Key elements of this strategy include further revenue growth, operational efficiency measures, capital efficiency improvements, strategic focus, growth investments in Wealth Management and Private Banking, and an emphasis on Asset Management. The bank aims to achieve a compound annual growth rate around 5.5–6.5 percent, with continuous asset inflows and rising assets under management.
Operational efficiency measures aim to complete €2.5 billion in cost savings by the end of 2025, including workforce optimization and platform enhancements. By mid-2025, about 90 percent of these savings had been realized. The bank also aims to reduce risk-weighted assets, with cumulative reductions reaching €30 billion, meeting the high end of its 2025 target range.
Deutsche Bank also plans to strengthen its position as Germany’s leading wealth manager and capital markets bank while expanding its role as a gateway to Europe for global investors. The bank aims to build bridges for companies and investors with its strong position in the home market.
In summary, Deutsche Bank is positioning itself for future growth by focusing on innovation, efficiency, and strategic investments. The bank is working on its strategy for the period beyond 2025, aiming to become even more focused, efficient, and powerful, strengthening its comprehensive client services in a complex and volatile geopolitical and economic environment.
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[2] Deutsche Bank (2021). Deutsche Bank publishes Q1 2021 results. [online] Available at: https://www.db.com/en/investor-relations/financial-reports/quarterly-results/q1-2021-results.html
[3] Deutsche Bank (2020). Deutsche Bank publishes 2020 annual results. [online] Available at: https://www.db.com/en/investor-relations/financial-reports/annual-results/2020-annual-results.html
[4] Deutsche Bank (2021). Deutsche Bank announces new strategic focus. [online] Available at: https://www.db.com/en/investor-relations/strategy/strategy-update.html
[5] Deutsche Bank (2021). Deutsche Bank announces new leadership for Global Wealth Management and Asset Management. [online] Available at: https://www.db.com/en/investor-relations/news/press-releases/2021/deutsche-bank-announces-new-leadership-for-global-wealth-management-and-asset-management.html
- Deutsche Bank's focus on strategic investments, particularly in Asset Management, is a testament to its commitment to bolster its business operations and maintain its position as a key player in finance.
- In its quest for operational excellence and maintaining a competitive edge, Deutsche Bank continues to prioritize technology, with a deliberate plan to optimize platforms within its asset management division.
