Website announces pre-tax profits of €5.7 billion for 2023, plans to distribute €1.6 billion to shareholders as capital distributions
Deutsche Bank Reports Q4 Results and Outlines 2025 Strategy
Deutsche Bank has released its fourth-quarter financial results, detailing a mixed performance while outlining ambitious goals for 2025.
In the final quarter of 2023, noninterest expenses stood at €5.5 billion, marking a 5% year-on-year increase, while adjusted costs reached €5.3 billion, up 9%. These figures include exceptional items not expected to recur in future periods.
The bank's Common Equity Tier 1 (CET1) capital ratio improved to 13.7% at the end of 2023, up from 13.4% at the end of 2022. ESG-related financing and investment volumes reached €14 billion in the fourth quarter, bringing the cumulative total since January 1, 2020, to €279 billion, including €64 billion in 2023.
Deutsche Bank's workforce grew to 90,130 full-time equivalents (FTEs) at the end of 2023, an increase of 871 FTEs during the quarter.
Looking ahead, Deutsche Bank has set ambitious targets for 2025, focusing on revenue growth, disciplined cost management, strong capital generation, and shareholder returns. The bank aims for a compound annual growth rate (CAGR) of 5.5-6.5% from 2021 to 2025, corresponding to a revenue level around €32 billion for the full year 2025.
To achieve this growth, Deutsche Bank has committed to a strict cost discipline, aiming for a cost/income ratio under 65% for 2025. The bank also plans to outperform at least €8 billion in total distributions to shareholders, including dividends and share buybacks, starting in 2025.
Deutsche Bank has maintained a strong capital position, with a CET1 ratio targeted at 13.5-14.0%, well above regulatory minima, and plans to deliver a post-tax return on tangible equity (RoTE) above 10% in 2025.
Additional context from mid-2025 results confirms progress towards these goals, including net commission income growth aligned with fee-based business expansion, ongoing cost efficiency improvements, and cumulative €30 billion capital efficiency gains contributing to a CET1 ratio of 14.2%.
Deutsche Bank has also been active in environmental, social, and governance (ESG) initiatives. The bank became the first bank to join #BackBlue, a UN-backed finance commitment which aims to support ocean protection. At the UN Climate Change Conference (COP28) in Dubai, the bank hosted multiple events, one in partnership with six German industrial companies.
The bank has also published its Initial Transition Plan, outlining its future roadmap for achieving net zero emissions by 2050, and announced the formation of a new Nature Advisory Panel. Deutsche Bank acted as Co-Lead of the Net Zero Banking Alliance (NZBA) Real Estate Working Group, which published its Emerging Practice Paper during the quarter.
The figures in this release are preliminary and unaudited, and the 2023 Annual Report and Form 20-F will be published on March 14, 2024. An analyst call to discuss the fourth quarter and full-year 2023 financial results will take place at 11:00 CET today. The Financial Data Supplement (FDS), presentation, and audio webcast for the analyst conference call are available at: www.our website/quarterly-results.
Deposits stood at €622 billion at the end of 2023, up by €11 billion during the fourth quarter and €29 billion during the second half of 2023. Liquidity reserves were €261 billion at the end of the fourth quarter of 2023, up from €245 billion at the end of the third quarter.
Nonoperating costs for 2023 were €1.1 billion, primarily due to restructuring and severance expenses of €566 million and impairments of goodwill and other intangible assets of €233 million.
A fixed income investor call will take place on February 2, 2024, at 15:00 CET. This conference call will be transmitted via internet: www.our website/quarterly-results. The bank's Annual Media Conference will be held at 09:00 CET today.
[1] Deutsche Bank 2023 Full-Year Announcement [2] Deutsche Bank Mid-2025 Results Update
- Deutsche Bank, in its 2023 full-year announcement, has outlined its 2025 strategy, with a focus on revenue growth, cost management, strong capital generation, and shareholder returns.
- The bank aims for a compound annual growth rate (CAGR) of 5.5-6.5% from 2021 to 2025, corresponding to a revenue level around €32 billion for the full year 2025.
- To achieve this growth, Deutsche Bank has committed to a strict cost discipline, aiming for a cost/income ratio under 65% for 2025.
- The bank also plans to outperform at least €8 billion in total distributions to shareholders, including dividends and share buybacks, starting in 2025.
- In addition to its business strategy, Deutsche Bank has been active in environmental, social, and governance (ESG) initiatives, joining the #BackBlue commitment to support ocean protection and hosting events at the UN Climate Change Conference (COP28).
- The bank has also published its Initial Transition Plan, detailing its roadmap for achieving net zero emissions by 2050, and formed a new Nature Advisory Panel for this purpose.
