Experiencing a substantial 10% year-over-year increase in pre-tax profits, our site hit €2.0 billion in Q1 of 2024.
Deutsche Bank has published its Q1 2024 financial results, revealing a series of positive developments that underscore the bank's continued focus on revenue growth, disciplined cost management, and achieving strong profitability benchmarks.
Key Highlights
- Revenue growth: For H1 2024, net banking income was €16.3 billion, representing a 6% increase year-on-year. This aligns with the bank’s annual target of €32 billion [1][3][5].
- Profit growth: Pre-tax profit for H1 2024 reached €2.4 billion, and net profit was €1.5 billion. The bank more than doubled profits in the following half-year (H1 2025) [1][3]. Q1 2024 is part of this period, showing some momentum but with stronger growth shown later.
- Cost/income ratio: The bank achieved a significant reduction in noninterest expenses by 15% year-on-year to €10.2 billion in H1 2025, with adjusted costs flat year-on-year at €10.1 billion. This contributed to positive operating leverage in the period [3][5].
- Return on equity: The bank reported a post-tax Return on Tangible Equity (RoTE) of 11% for the first half of 2025, exceeding the target threshold of 10%. The leverage ratio stood at 4.7% at the end of Q2 2025, indicating capital strength [3].
Specific Q1 2024 Results
- Adjusted costs were reduced by 6% to €5.0 billion.
- Net revenues grew 1% year on year to €7.8 billion, primarily driven by growth of 11% in commissions and fee income.
- Provision for credit losses was €439 million, or 37 basis points of average loans, down from €488 million in the fourth quarter of 2023.
- Noninterest expenses were reduced by 3% to €5.3 billion.
- Customer deposits rose by €13 billion to €635 billion during the quarter.
- The bank's profit before tax rose 10% to €2.0 billion for Q1 2024.
Other Significant Developments
- The bank received a rating upgrade from the non-profit rating agency CDP, indicating that the bank is above industry average in all categories.
- Deutsche Bank published its revised Sustainable Finance Framework, which includes updated criteria for classifying financings as sustainable, as well as a new Sustainable Instruments Framework for the issuance of social bonds.
- Environmental, Social and Governance (ESG)-related financing and investment volumes ex-DWS3 were €21 billion in the quarter, bringing the cumulative total since January 1, 2020 to €300 billion.
- The bank participated in a €4.4 billion non-recourse project financing for Automotive Cells Company to enable the development of three gigafactories for lithium-ion battery cell production across Europe.
- A fixed income investor call will take place on April 26, 2024, at 15:00 CEST.
- The Liquidity Coverage Ratio was 136% at the end of the quarter, compared to 140% at the end of the fourth quarter of 2023, with a surplus of €58 billion.
- The Net Stable Funding Ratio was 123%, above the bank's target range of 115-120%, representing a surplus of €112 billion above required levels.
- The Leverage ratio was 4.5% at the end of the first quarter, essentially unchanged from the end of the previous quarter.
- The Common Equity Tier 1 (CET1) capital ratio was 13.4% at the end of the first quarter of 2024, compared to 13.7% at the end of the fourth quarter of 2023.
Looking Ahead
- For the full year 2024, provisions for credit losses are expected to remain at the higher end of the previously communicated guidance range of 25-30 basis points of average loans.
- Management will discuss with shareholders its proposal to link parts of Management Board compensation for 2024 to the carbon emission sectoral targets for the corporate loan portfolio.
- The Management Board and the Supervisory Board have proposed the payment of a cash dividend of €0.45 per share in respect of the financial year 2023, up 50% over 2022.
- An analyst call to discuss first-quarter 2024 financial results will take place at 11:00 CEST today.
- A fixed income investor call will take place on April 26, 2024, at 15:00 CEST.
This demonstrates Deutsche Bank's ongoing focus on revenue growth, disciplined cost management, and achieving strong profitability benchmarks including RoTE and return on equity [1][3][5]. The bank highlights its best half-year results since 2007 and progress toward medium-term goals.
| Metric | Q1 2024 / H1 2024 | Target / Trend | |---------------------------|------------------------------------------|-------------------------------------| | Net banking income | €16.3 billion for H1, +6% YoY | €32 billion for full year 2025 | | Pre-tax profit | €2.4 billion for H1 2024 (Q1 included) | Significant profit growth expected | | Net profit | €1.5 billion for H1 2024 | More than doubled in H1 2025 | | Cost/Incomes | Noninterest expenses declined 15% in H1 | Stable/flat adjusted costs | | Return on Tangible Equity | >10% RoTE in H1 2025 (11%) | Target >10% RoTE | | Leverage Ratio | 4.7% at mid-2025 | Maintain capital strength |
[1] Deutsche Bank Press Release, Q1 2024 Results: Link [3] Deutsche Bank Press Release, H1 2025 Results: Link [5] Deutsche Bank Investor Presentation, H1 2025 Results: Link
- Deutsche Bank's asset management division sees growth in commissions and fee income, with a 14% increase in H1 2025 compared to Q1 2024.
- Wealth management and private banking sectors also show positive results, as customer deposits rose by €13 billion in Q1 2024.
- Deutsche Bank is committed to sustainable finance, with ESG-related financing and investment volumes ex-DWS reaching €300 billion since January 1, 2020.
- The bank's focus on investing in business and personal-finance segments is evident, as it participates in a €4.4 billion project financing for Automotive Cells Company in Q1 2024.
- Management is proposing to link parts of their compensation for 2024 to the carbon emission sectoral targets for the corporate loan portfolio, demonstrating a commitment to environmentally-conscious business practices.
