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Germany’s largest lender Deutsche Bank on Thursday reported weaker-than-expected profit that fell sharply in the last three months of 2024, as legal provisions weighed on the bottom line. Frankfurt-listed shares of the bank were down 3.43% at 12:57 p.m. London time on Thursday. Net profit attributable to shareholders hit 106 million euros ($110.4 million) in the fourth quarter, compared with the 282.39 million euros forecast in an LSEG poll of analysts. The result marked a significant fall from the 1.461 billion euros achieved in the third quarter. Full-year net profit attributable to shareholders came in at 2.698 billion euros, down 36% from 2023. Revenue reached 7.224 million euros in the fourth quarter, versus an LSEG analyst poll of 7.125 billion euros — but was eroded by litigation costs over the period to the tune of 594 million euros. Full-year 2024 revenue grew 4% year-on-year to 30.1 billion euros. Deutsche Bank CFO James von Moltke admitted that the bank saw “a very high level of non-operating costs in 2024.” “We are not happy with one-off expenses or surprises and most of these things have really been … issues arising from the past, sometimes the distant past, the PostBank takeover litigation matter in 2024 is a good example. Which, on a net basis, represents about 900 million of costs in ’24,” von Moltke told CNBC’s Annette Weisbach in a Thursday interview. “So in a sense, the only good news thing you can say about it: it’s behind us. And importantly, therefore, the risk profile of the company is dramatically changed,” he added The bank said it now targets a cost-income ratio of below 65% this year, compared with an initial goal of below 62.5%. Despite the drop in quarterly profit, Deutsche Bank also launched a 750 million-euro share buyback. Other fourth-quarter highlights…

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Filed under: News - @ January 30, 2025 2:24 pm