Deutsche Bank (NYSE:DB) Q4 2025 Earnings call January 29, 2026 05:00 AM ET Company ParticipantsChristian Sewing - CEOIoana Patriniche - Head of Investor RelationsJames von Moltke - CFOKian Abouhossein - Managing DirectorRaja Akram - Chief Accounting Officer and Deputy CFOConference Call ParticipantsAndrew Coombs - Managing Director and Senior Equity Research AnalystAnke Reingen - AnalystChris Hallam - Managing Director and Senior Equity AnalystFlora Bocahut - Managing Director and Senior Equity Research Ana ...

Deutsche Bank (NYSE:DB) Q4 2025 Earnings call January 29, 2026 05:00 AM ET Speaker3Ladies and gentlemen, welcome to the Q4 2025 analyst conference call and live webcast. I'm Moritz, the call's call operator. I would like to remind you that all participants will be in a listen-only mode, and the conference is being recorded. The presentation will be followed by a question and answer session. You can register for questions at any time by pressing star and one on your telephone. For operator assistance, please ...

Financial Data and Key Metrics Changes - The company reported revenues of EUR 32 billion for 2025, representing a compound annual revenue growth of 6% since 2021, within the target range of 5.5%-6.5% [2] - Pre-tax profit reached EUR 9.7 billion, and net profit was EUR 7.1 billion, with a post-tax return on tangible equity of 10.3%, meeting the full-year target of above 10% [3] - The cost-income ratio was 64%, in line with the target of below 65%, and credit loss provisions decreased to EUR 1.7 billion, down year-on-year [2][3] Business Line Data and Key Metrics Changes - The Corporate Bank delivered revenue growth of over 40% since 2021, benefiting from a normalized interest rate environment and increased fee income [6] - The Investment Bank saw a 5% year-on-year increase in revenues for the fourth quarter, driven by strength in Fixed Income and Commodities (FIC) [26] - The Private Bank achieved a post-tax return on tangible equity of 10.5% for the full year, with revenues of EUR 2.4 billion, including a 10% year-on-year growth in net interest income [29] Market Data and Key Metrics Changes - The company reported a strong CET1 ratio of 14.2% at year-end, despite capital headwinds, and maintained a liquidity coverage ratio of 144% [3][16] - The asset management arm, DWS, attracted EUR 85 billion of net new assets over the last four years, with assets under management surpassing EUR 1 trillion in 2025 [8] Company Strategy and Development Direction - The company aims to scale its global house bank model, focusing on growth, capital discipline, and a scalable operating model [11][12] - The strategic roadmap includes increasing post-tax return on tangible equity from 10% in 2025 to greater than 13% by 2028, and improving the cost-income ratio to below 60% [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong start to 2026 and the ability to deliver on the 2028 agenda, aiming to become the European champion in banking [12][36] - The company expects full-year revenues to increase to around EUR 33 billion in 2026, supported by growth in net interest income and net commission income [34] Other Important Information - The company proposed a EUR 1 dividend per share and a EUR 1 billion share buyback, with total distributions for 2025 reaching EUR 2.9 billion, exceeding the original target of EUR 8 billion for cumulative distributions from 2021 to 2025 [4][10] - The transition to the new CFO, Raja Akram, was noted as seamless, with management expressing gratitude for the outgoing CFO, James von Moltke's contributions [13][14] Q&A Session Summary Question: What are the expectations for revenue growth in 2026? - The company expects full-year revenues to increase to around EUR 33 billion, aided by banking book net interest income growing to EUR 14 billion [34] Question: How is the company addressing cost management? - The company maintained strict cost discipline, with non-interest expenses expected to increase slightly above EUR 21 billion in 2026, including incremental investments to unlock growth [36]

Financial Data and Key Metrics Changes - The company reported record profitability in the first nine months of 2025, with revenues of €24.4 billion, aligning with the full-year goal of around €32 billion before foreign exchange effects [3] - Adjusted costs were €15.2 billion, consistent with guidance, and the post-tax return on tangible equity was 10.9%, meeting the full-year target of above 10% [3][4] - The cost-to-income ratio stood at 63%, also in line with the target of below 65% [3] - The CET1 ratio increased to 14.5% due to organic capital generation and share buyback programs [4][16] Business Line Data and Key Metrics Changes - The corporate bank achieved a post-tax return on tangible equity of 16.2% and maintained a cost-to-income ratio of 63%, showing year-on-year improvement [18] - The investment bank's revenues increased by 18% year on year, driven by strong performance in Fixed Income and Credit trading [20] - The private bank's profits before tax doubled, with a return on tangible equity rising to 12.6% [22] - Asset management saw a 42% increase in profit before tax, with revenues up 11% year on year [24] Market Data and Key Metrics Changes - The company experienced a 7% revenue growth year on year, or 10% when adjusted for foreign exchange translation impacts [10] - Net inflows in asset management totaled €12 billion, with significant contributions from passive products [25] - The corporate bank's loan volumes increased by €5 billion year on year, driven by trade finance growth [19] Company Strategy and Development Direction - The company is on track to meet or exceed all 2025 strategic goals, with a compound annual revenue growth of 6% since 2021 [5] - The strategy execution across all four business lines has shown double-digit profit growth and return on tangible equity [6][8] - The company is positioned to benefit from German fiscal stimulus and structural reforms, anticipating a growth rate of 1.5% in 2026 [8][35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 2025 targets, citing strong performance in Q3 and a positive outlook for Q4 [31][34] - The company expects lower provisioning levels in the second half of the year compared to the first half, indicating resilience in the credit portfolio [14][34] - Management highlighted the importance of the German government's fiscal stimulus as a lever for medium-term profitability [35][36] Other Important Information - The company completed a share buyback program worth €250 million, bringing total buybacks in 2025 to €1 billion [6][26] - The liquidity coverage ratio finished the quarter at 140%, and the net stable funding ratio was 119% [10] Q&A Session Summary Question: Thoughts on achieving 2025 targets and Q4 expectations - Management expressed high confidence in achieving 2025 targets, with a robust start in October and solid visibility for Q4 [31][32][34] Question: Benefits from German fiscal stimulus - Management reiterated optimism regarding the German fiscal stimulus and its potential impact on growth and competitiveness [35][36] Question: Outlook on private credit and risks - Management discussed the disciplined approach to private credit, highlighting opportunities for innovation despite spread compression [43][44] Question: Confirmation on CET1 ratio and capital distribution - Management confirmed the intention to sustainably distribute capital down to the 14% threshold, indicating a strong capital position [41][42] Question: Operational risk and corporate bank revenue expectations - Management clarified that operational risk updates are now a permanent feature, and they expect a rebound in corporate bank revenues in Q4 [59][60]