Deutsche Bank reported its strongest annual result since 2007, posting net profit attributable to shareholders of €6.12 billion for 2025, slightly above analyst expectations of nearly €6 billion and more than double the €2.7 billion recorded a year earlier.
The lender said the performance capped a three-year financial plan in which it pledged to deliver a return on tangible equity of more than 10%—a benchmark the bank said it achieved—while signalling a more ambitious profitability goal of 13% by 2028. Christian Sewing, the bank’s chief executive, described the latest results as a base for the next phase of strategy.
While the earnings update underscored a sustained turnaround, the announcement landed amid renewed scrutiny from authorities. Prosecutors’ actions and the bank’s market reaction kept attention focused not only on the financial outperformance but also on legal and compliance issues surrounding the Frankfurt-based institution.
Fourth-Quarter Surge And Capital Return Plans
Momentum was most visible in the final quarter of the year. Deutsche Bank reported fourth-quarter net profit of €1.3 billion, sharply higher than €106 million in the same period a year earlier and above forecasts of roughly €1.12 billion, according to the company’s results and analyst estimates cited in reporting.
Alongside the earnings beat, the bank said it had authorised an additional €1 billion share buyback. The capital return measure follows a period in which management has sought to demonstrate that improved profitability can translate into shareholder distributions, while still funding technology spending and risk controls.
For 2026, the lender projected revenue rising to around €33 billion, up from €32.1 billion. Even as management pointed to progress on its current plan, analysts cited in the report have questioned whether the bank can achieve the 13% profitability objective by 2028.
Investment Bank Drives Growth, Trading Outperforms
The investment bank again provided the main lift to results. In the quarter, the division was Deutsche Bank’s largest revenue generator and delivered a 5% increase in revenue, roughly in line with market expectations. Within that unit, revenue from the fixed-income and currency trading business rose 7%, exceeding forecasts for a 4% gain.
The trading performance was broadly consistent with the strength reported elsewhere on Wall Street. Comparable fixed-income and currency trading revenue increased 7% at JPMorgan and 12% at Goldman Sachs, highlighting a supportive backdrop for major dealers during the period.
Other divisions delivered a more mixed picture. Revenue in the retail bank rose 3%, slightly below expectations for a 3.9% increase. The corporate bank reported a 2% revenue decline, compared with forecasts for a drop of about 1%.
Prosecutors’ Searches And Outlook For German Banks
The results were released a day after German authorities searched the bank, with the operation continuing into a second day. Frankfurt prosecutors said they were investigating as-yet unidentified individuals and bank employees in a probe linked to suspected money laundering, according to reporting.
Christian Sewing said the matter was prompted by the alleged late filing of a suspicious activity report, and that the activity in question involved transactions between 2013 and 2018. He said the bank was cooperating with authorities. In mid-morning trade, Deutsche Bank shares were down 2.3%, extending a decline from the prior session.
Despite the legal overhang, credit analysts have pointed to improving earnings conditions for German lenders. S&P Global Ratings said in a report the prior week that German bank earnings were likely to keep improving beyond 2025, in part supported by increased lending tied to government plans for infrastructure and defence spending; the agency also lifted Deutsche Bank’s outlook to positive in December.
