German’s biggest lender German bank On Thursday, a weaker profit was reported than expected, which had dropped significantly in the last three months of 2024.
Frankfurt has been listed on bank stocks and has stopped a part of the loss from the early stage of the day to the end of 1.9 %.
The net income caused by shareholders achieved € € $ € € in the fourth quarter, but Analyts’ LSEG polls were expected to be € 282,239 million. The results showed a significant decline from 1,461 million euros achieved in the third quarter.
The net income of shareholders was 269.8 billion euros, which fell 36 % from 2023.
Profit reached 7224 million euros in the fourth quarter, but was eroded by lawsuit expenses over the period of 594 million euros compared to the 712.5 billion Euro LSEG analyst survey. The revenue for the year 2024 increased by 4 % year -on -year to 30.1 billion euros.
Deutsche Bank CFO James Von Moltke acknowledged that the bank saw the “very high level of non -operating costs in 2024”.
“We are not satisfied with the cost or surprise of one time. Most of these are really … problems that arise from the past, sometimes distant past, 2024 -after -bank acquisition lawsuit is a good example. However, Net base represents about 900 million in 24, “said Von Moltke in an interview on Thursday.
“In a way, the only good news that you can say about it is behind us, and importantly, the company’s risk profile will change dramatically,” he added.
Banks have targeted the ratio of costs and income less than 65 % this year compared to the first goal of less than 62.5 %. Despite the decline in quarterly profits, German Bank has also begun to buy 750 million euros.
Includes other highlights in the fourth quarter.
The tax -donation of 583 million euros, the decrease of 17 % year -on -year, the provisions of credit losses of € 420 million, and the CET 1 capital ratio, which is a Solbencies of the bank, was 13.8 %. It has not been changed since the third quarter.
The German Bank fell 4.7 % from 7.4 % of the previous year to 4.7 % of the rates of 4.7 % tangible shares (Rote) in 2024.
Investment bank revenue is shining in the fourth quarter
The fourth quarter profit marks the set time for the lender who returned to Black in the third quarter after defeating the profit consecutive victory due to a loss of 143 million euros until the end of June. The provisions of a lawsuit via a department after the bank. Deutsche Bank was on a 2.5 billion euros cost reduction drive after the stock was gradually added and gradually acquired after the low crisis of 10 years of earning income in 2019 was low. 。
European banks, which were previously supported by repurchasing and high interest interest environments, have to deal with partial losses in support because the European Central Bank has continued the cycle to alleviate last year’s monetary policy. yeah. ECB is widely expected to trim rates again at the meeting in the second half of Thursday sessions.
“The strong tailwind from a higher interest rate is over. Banks are not only net interest but also focus on commission -based income, and those who may merge or acquire are more suitable in 2025. I believe it is in Germany, Italian, Spain, and ING Analysts in November.
Deutsche Bank has recently seen a robust performance from investment banking operations. This is a major factor in the third quarter revenue and the core growth pillar. In the fourth quarter, the revenue of the bank unit increased by 30 % to 2.4 billion euros in the fourth quarter, and in 2024 it increased 15 % year -on -year to 10.6 billion euros.
German banks are also weathering a storm of dimly in Europe’s largest economy this year, and has changed political volatility prior to the future general election.
“I share complaints that are quite wide in Europe. Europe has been working relatively in the past few years because Europe has worked through the transition of many items, energy costs, inflation, and interest rates. “I want to see a policy mix that focuses on the growth and competitiveness of Europe on Thursday.
In Japan, German banks can benefit from uncertainty about the fate of Commermerzbank, the second largest in Germany. UNICREDIT in Italy has been deprived of potential acquisition since September.
When I talked to CNBC on Thursday, Von Moltke states that Deutsche Bank is considering competition and profit methods and evaluates the strategic effects from the “landscape change” caused by successful Unicredit Takeover. I did it.
Crossing the Atlantic
European banks are under pressure to compete with the scale, growth, profitability of US colleagues, which German banks are steadily investing to strengthen the foothold. According to Von Moltke, Deutsche’s domestic business is currently about 20 % of measures, including balance sheets and profits.
“This is a cumulative investment. For example, by hiring a bank family and a banking banker in Corporate Finance, we have increased its footprints, so we hope to make a profit there,” he expects to make a profit. I talked to. “Similarly, on the market side we have made some truly strategic investments, but we think they are already rewarded.”
He agrees that the US business has room for “distribution and crystallization in the future” and shares the optimism of the intercourse over the regional outlook. I am. After President Donald Trump was appointed, the market participants are the potential for the white house leaders who are currently light -touch regulations and banks and banks working in commercial spaces in the United States. I’m looking at whether to protect the impact. Beyond European lenders.
