Website's 1st Half 2025 Profit Before Tax Surges to €5.3 Billion, a 2x Increase
Deutsche Bank has reported a significant increase in profit before tax for the first half of 2025, excluding the impact of Postbank litigation. The bank's strong performance was driven by a diverse range of factors, including revenue growth, disciplined cost management, lower credit loss provisions, and positive operating leverage.
The bank held a workshop with representatives from rainforest nations at the UN Climate Conference in Bonn (SB 61), focusing on the development of carbon credits. Additionally, the bank sponsored the CDP's annual DACH disclosure workshop in Frankfurt.
Revenue Growth Fueled Expansion
The bank's revenue grew by 6% year-on-year to €16.3 billion, primarily due to a diversified and complementary business mix across investment banking, asset management, corporate banking, and private banking segments. This growth was a key factor in the bank's increased profitability.
Cost Management Remained Disciplined
Despite a 15% reduction in noninterest expenses, the bank's adjusted costs remained stable year on year at approximately €10.1 billion. This discipline in cost management and operational efficiencies contributed to the bank's strong performance.
Credit Loss Provisions Decreased
The bank reduced provision for credit losses by 11%, which positively impacted profitability. This decrease was a significant factor in the bank's improved financial position.
Operating Leverage Boosted Profitability
The bank's higher revenues combined with stable costs boosted profitability significantly, driving the strong underlying performance.
Macroeconomic Challenges Overcome
The bank's strong performance occurred despite a more challenging macroeconomic environment, demonstrating the bank's resilience in the face of adversity.
Financing Activities and ESG Investments
The bank's sustainable financing activities in the Corporate Bank, Investment Bank, and Private Bank cumulatively totaled € 81 billion, € 253 billion, and € 74 billion respectively since January 1, 2020. Additionally, sustainable Financing and ESG investment volumes ex-DWS were € 28 billion in the second quarter, the highest in the bank's businesses since 2021, bringing the cumulative total since January 1, 2020 to € 417 billion.
Liquidity and Capital Position
The bank's Liquidity Coverage Ratio was 136% at the end of the second quarter, above the regulatory requirement of 100% and representing a surplus of € 62 billion. The Net Stable Funding Ratio was 120%, compared to 119% at the end of the first quarter, at the high end of the bank's target range of 115-120% and representing a surplus of € 107 billion. The bank also maintained a healthy Common Equity Tier 1 (CET1) capital ratio of 14.2% at the end of the second quarter, up from 13.8% in the first quarter of 2025.
Cost and Expense Breakdown
Nonoperating costs for the first half of 2025 were € 49 million, significantly lower than the prior year period due to the non-recurrence of Postbank litigation expenses. Adjusted costs in the second quarter of 2025 were € 5.0 billion, in line with quarterly guidance and down 1% year on year. In the second quarter, noninterest expenses were € 5.0 billion, down 26% year on year, primarily reflecting the non-recurrence of Postbank litigation impact. Restructuring & Severance expenses for the first half of 2025 were € 117 million, down 42% year on year.
Credit Loss Provisions and Loans
Provision for performing (Stage 1 and 2) loans in the second quarter was € 123 million, materially higher than in the prior year quarter, primarily reflecting regulatory-driven model updates and portfolio effects. Provision for non-performing (Stage 3) loans in the second quarter was € 300 million, down from the prior year period. Provision for credit losses in the second quarter was € 423 million, or 36 bps of average loans, down 10% compared to the first quarter of 2025 and 11% from the second quarter of 2024.
Other Key Metrics
Customer deposits were € 653 billion in the second quarter, down from € 665 billion in the first quarter and up from € 641 billion in the second quarter of 2024. High Quality Liquid Assets were € 232 billion at the end of the quarter, slightly higher than € 231 billion at the end of the first quarter.
Awards and Recognition
The bank received the certificate of 'berufundfamilie +vielfalt' in Germany for being a family-friendly and inclusive employer.
Workforce and Employment
The workforce was 89,426 full-time equivalents (FTEs) at the end of the first half of 2025, materially unchanged from the end of the first half of 2024.
In conclusion, the profit before tax increase stemmed from revenue growth across diversified businesses, disciplined cost controls, lower credit loss provisions, and positive operating leverage, excluding any gains or losses from Postbank litigation. The bank's strong performance demonstrates its commitment to sustainable growth and resilience in the face of macroeconomic challenges.
The bank has focused on sustainable finance, serving as a sponsor for the CDP's annual DACH disclosure workshop in Frankfurt and holding a workshop with representatives from rainforest nations at the UN Climate Conference in Bonn (SB 61).
Sustainable financing activities cumulatively totaled € 348 billion across Investment Bank, Corporate Bank, and Private Bank since January 1, 2020, and sustainable Financing and ESG investment volumes ex-DWS reached € 417 billion in the second quarter of 2025.
The bank's liquidity and capital position remains strong, with a Liquidity Coverage Ratio of 136% and a Net Stable Funding Ratio of 120%, both above regulatory requirements. The bank's Common Equity Tier 1 (CET1) capital ratio was 14.2% at the end of the second quarter, up from the first quarter of 2025.
Deutsche Bank received the certificate of 'berufundfamilie +vielfalt' in Germany for being a family-friendly and inclusive employer, demonstrating their focus on personal-finance matters for their workers.
Despite a more challenging macroeconomic environment, the bank's asset management, wealth management, and private banking segments drove significant revenue growth, contributing to a strong business performance.
