Deutsche Bank AG-Deutsche Bank Q4 Earnings Decline, Revenues & Expenses Rise Y/Y

Core Viewpoint - Deutsche Bank reported a significant decline in fourth-quarter 2024 earnings, with a profit attributable to shareholders of €106 million ( $113 million), down 92% year over year [1] Financial Performance - The bank's profit before tax was €583 million ($ 621.9 million), a decrease of 16.5% year over year, impacted by specific litigation items related to the Postbank takeover [2] - Net revenues for the quarter were €7.2 billion ( $7.7 billion), reflecting an 8% increase year over year, driven by strong growth in commissions and fee income [3] - Non-interest expenses rose to €6.2 billion ($ 6.6 billion), up 14% from the prior-year quarter, primarily due to increased general and administrative expenses [3] - Adjusted non-interest expenses were €5.3 billion, down 1% from the prior year [4] - Provision for credit losses was €420 million ( $448 million), down 14% from the prior-year quarter [4] Segmental Performance - Corporate Bank net revenues were €1.9 billion ($ 2 billion), down 2% year over year due to lower net interest income [5] - Investment Bank segment saw net revenues of €2.4 billion ( $2.6 billion), up 30% year over year, driven by growth in Fixed Income and Currencies, and Origination & Advisory [5] - Private Bank's net revenues were flat at €2.4 billion ($ 2.6 billion) year over year [6] - Asset Management reported net revenues of €709 million ( $756.3 million), a 22% increase year over year due to higher performance and transaction fees [6] - Corporate & Other segment had negative net revenues of €99 million ($ 105.6 million), compared to negative $64 million in the prior-year quarter [6] Capital Position - The Common Equity Tier 1 capital ratio was 13.8% as of December 31, 2024, slightly up from 13.7% in the previous year [7] - The leverage ratio on a fully loaded basis increased to 4.6% from 4.5% year over year [7] 2025 Outlook - Deutsche Bank aims for €32 billion ($ 34.1 billion) in revenues for 2025, reaffirming its revenue growth ambition aligned with a CAGR target of 5.5-6.5% from 2021 to 2025 [8] - Projected provision for credit losses is expected to be between €340-€400 million ( $362.7–$ 426.7 million) per quarter [8] Overall Assessment - A strong balance sheet and revenue growth are expected to support Deutsche Bank's financials, although elevated expenses may hinder bottom-line growth [9]