Deutsche Bank (DBK) Q2 2025 earnings summary

Executive summary

• First-half 2025 revenues grew 6% year-over-year to €16.3 billion, tracking toward the full-year target of €32 billion, with strong operating leverage and improved profitability.

• Noninterest expenses declined 15% year-over-year to €10.2 billion, with a cost-to-income ratio of 62% and flat adjusted costs, reflecting strong cost discipline.

• Return on tangible equity reached 11% in H1 2025, exceeding the >10% target.

• Pre-provision profit nearly doubled year-over-year to €6.2 billion, with all four business segments delivering double-digit profit growth.

• CET1 capital ratio increased to 14.2%, underpinning business growth and shareholder distributions.

Financial highlights

• Net revenues rose 6% year-over-year to €16.3 billion for H1 2025; Q2 revenues up 3% to €7.8 billion.

• Profit before tax for H1 2025 more than doubled year-over-year to €5.3 billion; profit attributable to shareholders was €3.3 billion.

• Diluted EPS for Q2 was €0.48; tangible book value per share rose 3% year-over-year to €29.50.

• Provision for credit losses was €894 million in H1 2025, or 37bps of average loans, with Stage 3 provisions reduced to €300 million in Q2.

• Liquidity coverage ratio at 136% and leverage ratio at 4.7%, both above regulatory requirements.

Outlook and guidance

• Full-year 2025 revenue target reaffirmed at €32 billion, with cost-to-income ratio below 65% and RoTE above 10%.

• Revenue momentum expected to continue in H2, with delayed O&A deals and strong FIC pipeline.

• Provisioning levels for credit losses anticipated to decline in H2; noninterest expenses for 2025 expected to be lower than 2024.

• Capital distributions to exceed €8 billion, with further buybacks planned and a second share buyback application submitted.

• German fiscal stimulus impact expected mainly from 2026 onward, providing further upside.