Communication from CEO Christian Sewing Regarding Q2 Outcomes of 2025 Sent to All Employees
Deutsche Bank Reports Strong First-Half Performance and Outlines Future Strategy
Deutsche Bank has announced impressive financial results for the first half of the year, with a pre-tax profit more than doubling to 5.3 billion euros. This growth is a testament to the bank's strong position in the home market and its commitment to building bridges for companies and investors.
All four divisions – Corporate Bank, Investment Bank, Private Bank, and Asset Management – reported double-digit profit growth, with each achieving a return on tangible equity (RoTE) of around 10% or more. The exceptional performance is attributed to the hard work and commitment of the bank's employees, whose dedication, focus, and discipline have been instrumental in the bank's success.
The bank is on track to meet its revenue and cost ambitions, with revenues increasing by 6% year on year to 16.3 billion euros. Operational efficiency measures have resulted in savings of nearly €2.5 billion, and risk-weighted asset reductions have contributed to capital efficiency. The bank's CET 1 capital ratio stands at 14.2%.
Despite the challenging economic environment, marked by discussions about tariffs and global trade relations, and the tense geopolitical situation, as evidenced by the escalation in the Middle East conflict, Deutsche Bank remains robustly positioned. The bank is growing profitably, with its RoTE reaching 11 percent in the first six months of the year.
Looking ahead, Deutsche Bank is working on a strategy for the period beyond 2025. The goal is to become even more focused, efficient, and powerful as part of its Global Hausbank approach. The bank plans to deepen its segment coverage and invest in growth areas such as Wealth Management and Private Banking, while leveraging its broader product suite to better serve clients. Asset Management will continue to develop its diversified assets under management and act as a gateway for global investors to Europe.
Deutsche Bank aims to further strengthen cooperation across all areas and create an environment guided by responsibility, team spirit, and initiative-taking. The bank is also exploring opportunities offered by innovative technologies such as artificial intelligence.
The bank's target for return on tangible equity (RoTE) in the 2025 financial year is above 10 percent. This forward-looking strategy aims to boost returns, value generation, and shareholder distributions beyond 2025.
Sources: 1. Deutsche Bank 2. Reuters 3. Bloomberg 4. Financial Times
- Deutsche Bank's Asset Management division will continue to develop its diversified assets under management, acting as a gateway for global investors to Europe, as part of its strategic aim beyond 2025.
- In its future strategy, Deutsche Bank is investing in growth areas like Wealth Management and Private Banking, utilizing its broad product suite to better serve clients, while also exploring opportunities offered by innovative technologies such as artificial intelligence in various business areas, including finance.
