Deutsche Bank (DBK) Q4 2025 Fixed income earnings summary

Executive summary

• Achieved record profits in 2025, with net profit doubling to €7.1 billion and post-tax ROTE of 10.3%, meeting targets and setting a path toward >13% by 2028.

• Revenue reached €32.1 billion in 2025, up 7% year-on-year, driven by a diversified business mix and positive operating leverage.

• Cost discipline led to noninterest expenses of €20.7 billion, down 10% year-on-year, with cost/income ratio improving to 64%.

• All business segments contributed to double-digit profit growth and improved cost/income ratios.

• Cumulative capital distributions since 2022 reached €8.5 billion, surpassing the original €8 billion goal.

Financial highlights

• Pre-provision profit for 2025 was €11.4 billion, up 61% year-on-year and tripling since 2021.

• Net profit for 2025 was €7.1 billion, up 104% year-on-year; Q4 net profit was €1.6 billion.

• Noninterest expenses fell 10% to €20.7 billion, with an 86% reduction in nonoperating costs.

• Loan book grew by €5 billion in Q4, mainly from FIC financing and corporate bank portfolios.

• Deposits increased by €29 billion in Q4, with strong growth in the corporate bank.

Outlook and guidance

• Targeting post-tax ROTE above 13% and cost/income ratio below 60% by 2028.

• NII expected to rise to around €14 billion in 2026, mainly from structural hedge rollover and portfolio growth.

• Provision for credit losses expected to trend moderately downward in 2026, aiming for a 30bps average run rate through 2028.

• 2026 issuance needs reduced to €10-15 billion, down from €18.7 billion in 2025.

• Plans to increase payout ratio from 50% to 60% from 2026, with flexibility to distribute excess capital if CET1 ratio exceeds 13.5-14.0%.