Core Insights - The company reported a new leasing business of EUR 3.3 billion in 2025, reflecting a 7.8% increase from EUR 3.1 billion in 2024, primarily driven by growth in Germany, France, and Italy [1] - Despite a loss rate of 1.7%, which is above the historical average of 1.5%, the company achieved significant improvements in operating performance, with a return on equity after taxes remaining stable at 5.2% [2][3] - Group earnings for 2025 reached EUR 71.8 million, with consistent quarter-over-quarter growth throughout the year, despite geopolitical tensions and high corporate insolvencies [4][5] Leasing Performance - New leasing business increased to EUR 3.3 billion, with leasing receivables surpassing EUR 7 billion, driven by strong performance in Germany, France, and Italy, as well as future core markets like the U.S. and Australia [7][10] - The company reported a 14.7% rise in operating income and a 26% improvement in the operating result, leading to a cost-income ratio reduction to 55.2% [7][12] Risk Management - Risk provisions rose to EUR 196 million, resulting in a loss rate of 1.7%, while stage-3 coverage remained stable at nearly 60% [6][13] - The company has become more selective in accepting new business, which may lead to slightly lower growth rates in the near term [13] Financial Outlook - For 2026, the company guided earnings between EUR 74 million and EUR 86 million, with new business expected to be between EUR 3.4 billion and EUR 3.6 billion, assuming a loss rate of 1.6% to 1.7% [20] - The long-term target remains a 10% return on equity by 2030, with management expressing confidence in capital allocation and growth without the need for a midterm capital increase [6][15] Regional Performance - New business growth was reported at 13.7% in the DACH region, 8.5% in Western Europe, and 8.9% in Southern Europe, while Northern/Eastern Europe saw a decline of about 5% due to various factors [10] - Future core markets experienced a significant new business increase of 21.2%, primarily driven by the U.S. and Australia [10]

Financial Data and Key Metrics Changes - The post-tax return on tangible equity for 2025 was 10.3%, meeting the full-year target of above 10% and setting a foundation for a target of greater than 13% by 2028 [3] - Revenue for 2025 reached approximately EUR 32 billion, reflecting a 7% year-on-year increase and a 26% increase since 2021 [4] - Non-interest expenses decreased to EUR 20.7 billion, down 10% year-on-year, with a nearly EUR 1 billion reduction in the cost base since 2021 [4] Business Line Data and Key Metrics Changes - The Corporate Bank experienced revenue growth of over 40% since 2021, benefiting from a normalized interest rate environment and increased fee income [5] - The Investment Bank saw an 11% increase in client activity in 2025 compared to the previous year, with a focus on deepening and broadening the franchise [7] - The Private Bank improved its cost-income ratio to 70% and achieved returns above 10% in 2025 [7] Market Data and Key Metrics Changes - Net interest income (NII) for the fourth quarter was EUR 3.4 billion, totaling EUR 13.3 billion for the full year, in line with plans when adjusted for FX effects [9] - The loan book grew by EUR 5 billion in the fourth quarter, with strong underlying quality and growth in asset-backed financing and infrastructure lending [11] - The deposit book grew by EUR 29 billion in the fourth quarter, with significant growth in sight deposits from corporate clients [12] Company Strategy and Development Direction - The company aims to increase return on tangible equity from over 10% in 2025 to greater than 13% by 2028, with plans to improve the cost-income ratio to below 60% [8] - The strategy includes focused growth, strict capital discipline, and a scalable operating model to achieve these goals [8] - The company is positioning itself to become the European champion in its sector, with aspirations to improve market share and returns compared to European peers [32] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the commercial real estate sector, indicating that while there have been challenges, they hope to see stability in appraisals and leasing behavior [41][42] - The company anticipates a moderate downward trend in provisions for credit losses in 2026, with an expected average run rate of around 30 basis points through 2028 [22] - The management team emphasized the importance of maintaining a strong liquidity position and a diversified funding base to navigate the current economic environment [14][15] Other Important Information - The company closed 2025 with a total issuance volume of EUR 18.7 billion, aligning with its target range of EUR 15 billion to EUR 20 billion [20] - The common equity tier one ratio was reported at 14.2%, with a decrease of 30 basis points compared to the previous quarter due to one-off effects [15] - The company plans to issue EUR 10 billion to EUR 15 billion in 2026, with significantly lower funding requirements compared to 2025 [20] Q&A Session Summary Question: Impact of not defending the LGF notch for senior non-preferred - Management explained that the decision was made to optimize funding composition and cost base, aligning with European peers and allowing for a more efficient balance sheet [29][30] Question: Measuring the goal of becoming a European champion - Management indicated that achieving market-leading positions in key segments and leading returns compared to European peers will be critical metrics for success [33][34] Question: Concerns regarding commercial real estate provisions - Management acknowledged ongoing challenges in the commercial real estate sector, particularly in office spaces, and indicated that new appraisals and tenant activity are influencing provisions [40][41] Question: Expectations for lumpiness in commercial real estate resolutions - Management stated that while some lumpiness may occur, they do not expect significant volatility in the portfolio adjustments, barring larger single exposure events [50][52] Question: Impact of the German yield curve on balance sheet funding - Management noted that credit spreads are more critical for funding, and a steeper yield curve could be beneficial for their interest rate strategy [53][55]

Financial Data and Key Metrics Changes - The post-tax return on tangible equity for 2025 was 10.3%, meeting the full-year target of above 10% [3] - Revenue for 2025 reached approximately EUR 32 billion, a 7% increase year-on-year and a 26% increase since 2021 [4] - Non-interest expenses were EUR 20.7 billion, down 10% year-on-year, with a nearly EUR 1 billion reduction in the cost base since 2021 [4][5] - The pre-provision profit was EUR 11.4 billion, up threefold since 2021, with an operating leverage of 17% in 2025 [5] Business Line Data and Key Metrics Changes - The Corporate Bank experienced revenue growth of over 40% since 2021, benefiting from a normalized interest rate environment and increased fee income [5][6] - The Investment Bank saw an 11% increase in client activity in 2025 compared to the previous year, with targeted investments leading to market share gains [7] - The Private Bank improved its cost-income ratio to 70% and achieved returns above 10% in 2025 [7] - DWS, the asset management arm, attracted EUR 85 billion of net new assets since 2021, surpassing EUR 1 trillion in assets under management in 2025 [8] Market Data and Key Metrics Changes - Net interest income (NII) for the fourth quarter was EUR 3.4 billion, totaling EUR 13.3 billion for the full year, in line with plans [9] - The loan book grew by EUR 5 billion in the fourth quarter, with strong underlying quality [11] - Deposits increased by EUR 29 billion during the fourth quarter, with significant growth in the Corporate Bank [12] Company Strategy and Development Direction - The company aims to increase return on tangible equity from over 10% in 2025 to greater than 13% by 2028, with plans to improve the cost-income ratio to below 60% [8] - The strategy focuses on scaling the global house bank model through focused growth, strict capital discipline, and a scalable operating model [8][22] - The company is positioned to become a European champion by achieving market leadership in key segments and improving returns compared to European peers [32][34] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the commercial real estate sector, indicating that they are closely monitoring new appraisals and market conditions [40][42] - The company anticipates a moderate downward trend in provisions for credit losses in 2026, with an expected average run rate of around 30 basis points through 2028 [22] - Management highlighted the importance of maintaining a strong liquidity position, with a liquidity coverage ratio of 144% [14] Other Important Information - The common equity tier one ratio was 14.2%, reflecting a decrease of 30 basis points due to one-off effects [15] - The company plans to reduce Senior Non-Preferred issuance volumes in light of anticipated deposit growth and to optimize its funding composition [19][20] Q&A Session Questions and Answers Question: Impact of not defending the LGF notch for senior non-preferred - Management explained that the decision was made to optimize funding composition and align with European peers, allowing for a managed reduction in outstanding senior non-preferred issuances [27][29] Question: Definition of becoming a European champion - Management clarified that becoming a European champion involves achieving market leadership in key segments and leading returns compared to European peers, with a focus on gradual improvement in financial metrics [32][34] Question: Commercial real estate provisions - Management indicated that new appraisals and lease activity are influencing the need for additional provisions, particularly in the office sector, but expressed hope for stabilization in the market [40][41] Question: Expectations for lumpiness in commercial real estate resolution - Management stated that while some lumpiness may occur due to larger single exposures, they do not expect significant lumpiness overall [50][52] Question: Impact of the German yield curve on balance sheet funding - Management noted that credit spreads are more critical for funding, and a steeper yield curve could be beneficial for their interest rate strategy [53][55]

Financial Data and Key Metrics Changes - Deutsche Bank achieved a post-tax return on tangible equity of 10.3% in 2025, meeting its target of above 10% and setting a foundation for a target of greater than 13% by 2028 [3] - The bank reported revenues of approximately EUR 32 billion in 2025, reflecting a 7% year-on-year increase and a 26% increase since 2021 [4] - Non-interest expenses decreased to EUR 20.7 billion, down 10% year-on-year, with a nearly EUR 1 billion reduction in the cost base since 2021 [4] Business Line Data and Key Metrics Changes - The Corporate Bank experienced revenue growth of over 40% since 2021, benefiting from a normalized interest rate environment and increased fee income [5] - The Investment Bank saw an 11% increase in client activity in 2025, with targeted investments leading to market share gains [6] - The Private Bank improved its cost-income ratio to 70% and achieved returns above 10% in 2025 [6] Market Data and Key Metrics Changes - Net interest income (NII) for the full year was EUR 13.3 billion, with expectations for an increase to around EUR 14 billion in 2026, driven by structural hedge rollovers and targeted portfolio growth [9] - The loan book grew by EUR 5 billion in the fourth quarter, with strong underlying quality and growth in asset-backed financing and infrastructure lending [10] - Deposits increased by EUR 29 billion in the fourth quarter, with significant growth in sight deposits from corporate clients [11] Company Strategy and Development Direction - Deutsche Bank aims to increase return on tangible equity from over 10% in 2025 to greater than 13% by 2028, with plans to improve the cost-income ratio to below 60% [7] - The strategy focuses on scaling the global house bank model through focused growth, strict capital discipline, and a scalable operating model [7] - The bank is positioning itself to become a European champion by achieving market-leading positions in key segments and improving returns compared to European peers [30][31] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the commercial real estate sector, indicating that while challenges remain, there are signs of potential stabilization [41] - The bank's liquidity coverage ratio was managed to 144%, reflecting a robust liquidity position, and the CET1 ratio remains well above regulatory requirements [12][13] - Management highlighted the importance of maintaining a strong capital base and optimizing the funding composition in light of evolving market conditions [27] Other Important Information - Deutsche Bank's common equity tier one ratio decreased to 14.2%, influenced by one-off effects and increased market risk RWA [13][14] - The bank plans to issue EUR 10 billion to EUR 15 billion in 2026, with a focus on reducing senior non-preferred issuance volumes [19] - The bank's credit ratings have improved, with upgrades from major rating agencies reflecting better earnings and resilience [17] Q&A Session Questions and Answers Question: Regarding the decision not to defend the LGF notch for senior non-preferred - Management explained that the decision was made to optimize funding composition and align with European peers, as the transformation phase is now complete [27][28] Question: How to measure becoming a European champion - Management indicated that achieving a return on tangible equity of 13% and leading positions in key segments will be metrics for measuring success [30][31] Question: Concerns about commercial real estate provisions - Management acknowledged ongoing challenges in the commercial real estate sector, particularly in office spaces, and indicated that new appraisals and lease activity are influencing provisions [39][40] Question: Expectations for lumpiness in commercial real estate resolutions - Management stated that while some lumpiness may occur, they do not expect significant volatility in the portfolio adjustments [50] Question: Impact of the German yield curve on balance sheet funding - Management noted that credit spreads are more critical for funding, and a steeper yield curve could be beneficial for long-term rates [52]

Core Viewpoint - Deutsche Bank AG has outlined a structured plan to increase its return on tangible equity (RoTE) above 13% by 2028 through revenue growth, cost discipline, capital optimization, and higher shareholder payouts [1] Revenue Growth - The bank aims to achieve an additional €5 billion ($5.8 billion) in revenues by expanding its Global Hausbank across asset gathering, payments servicing, and advisory [2] - Deutsche Bank plans to generate €2 billion ($2.3 billion) of this growth in Germany by leveraging its home-market leadership and capitalizing on fiscal stimulus, structural reforms, private-sector investment, and long-term transformation spending [2] Cost Control and Efficiency - Deutsche Bank targets a cost-income ratio of below 60% by 2028, an improvement from previous goals [3] - This improvement is expected to be driven by €2 billion in gross cost efficiencies through process simplification, automation, and increased use of digital and AI-enabled platforms [3] Capital Management - The bank intends to maintain its Common Equity Tier 1 (CET1) ratio at 13.5-14%, balancing resilience with return optimization [4] - Starting in 2026, Deutsche Bank plans to increase its payout ratio to 60% of net profit attributable to shareholders, up from the current 50% target for 2025 [4] - Higher dividends and share buybacks are aimed at enhancing shareholder returns and reinforcing management's confidence in sustainable earnings [4] Market Performance - Over the past six months, Deutsche Bank shares have increased by 35.5% on the NYSE, outperforming the industry growth of 24.8% [9]

Financial Data and Key Metrics Changes - Record profitability was achieved in the first nine months of 2025, with revenues at EUR 24.4 billion, aligning with the full year goal of around EUR 32 billion before FX effects [3] - Adjusted costs remained consistent with guidance, with a post-tax return on tangible equity of 10.9%, meeting the target of above 10% [3][4] - The cost-income ratio stood at 63%, consistent with the target of below 65% [3] - Pre-provision profit increased to EUR 9 billion, up nearly 50% year on year, or nearly 30% when adjusted for Postbank litigation impacts [3] Business Line Data and Key Metrics Changes - Net commission and fee income rose by 5% year on year, while net interest income across key banking segments remained stable [4] - All four business lines delivered double-digit profit growth and return on tangible equity in the first nine months [6] - The Corporate Bank saw strong fee growth of 5% and was recognized as the best trade finance bank [7] - The Private Bank's profits surged by 71%, and assets under management in Wealth Management grew by EUR 40 billion year to date [7] Market Data and Key Metrics Changes - Loans grew by EUR 3 billion adjusted for FX effects during the third quarter, with strong underlying quality [9] - The deposit book expanded by EUR 10 billion in the third quarter, with significant growth in the Private Bank [10][11] - The liquidity coverage ratio was managed to 140%, demonstrating the strength of the balance sheet [11] Company Strategy and Development Direction - The company is on track to meet or exceed all 2025 strategy goals, with a compound annual revenue growth rate of 6% since 2021 [4][5] - Operational efficiencies of EUR 2.4 billion have been delivered or are expected, nearing the EUR 2.5 billion goal [5] - A second share buyback program of EUR 250 million was launched, bringing cumulative distributions since 2022 to EUR 5.6 billion [5] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a return on tangible equity above 10% and a cost-income ratio below 65% for the full year [17] - Despite uncertainties in commercial real estate and the macroeconomic environment, lower provisioning levels are anticipated in the second half of the year [17] - The company remains focused on growing its franchise and expanding market share, particularly in the Corporate Bank [10] Other Important Information - The CET1 ratio increased to 14.5%, with a surplus above regulatory requirements [12][14] - The MREL surplus increased by EUR 2 billion to EUR 26 billion, providing flexibility for future issuance [15][16] Q&A Session Summary Question: Future Return on Tangible Equity - Management indicated that a 10% return on tangible equity could be a reasonable floor for future performance, emphasizing structural profitability improvements [20][21] Question: Private Credit and Commercial Real Estate Exposures - Management noted that private credit is not a concern, while commercial real estate remains a watch item, particularly in California and Washington State [22][23] Question: Receivables Financing Exposure - Management acknowledged some exposure in trade finance and ABS but emphasized it is not significant [28][29] Question: Tier 2 Capital Stack - Management confirmed that Tier 2 instruments remain valuable, but the focus has been on Tier 1 capital needs [32] Question: Sustainability Competitive Disadvantage - Management does not view the sustainability landscape in Europe as a competitive disadvantage, highlighting progress in their sustainability agenda [30][31] Question: Commercial Real Estate Issues - Management detailed that issues are concentrated in West Coast exposures, with ongoing efforts to work with sponsors for value preservation [36][39]