Deutsche Bank reported its strongest annual profit since 2007 on Thursday, following a better-than-expected fourth quarter. The results were released just one day after police carried out searches at the lender as part of an alleged money-laundering investigation.
Germany’s largest bank posted net profit attributable to shareholders of €6.12 billion ($7.3 billion) for 2025, driven largely by robust performance at its global investment banking division.
The figure more than doubled from €2.7 billion a year earlier and slightly exceeded analyst forecasts of just under €6 billion.
The result marks Deutsche Bank’s sixth consecutive profitable year and its best performance in nearly two decades, a significant turnaround after years marked by heavy losses and regulatory concerns over the bank’s stability.
Strategy milestones and outlook
The 2025 financial year also concluded Deutsche Bank’s three-year strategic plan, during which it achieved its key profitability goal of a return on tangible equity above 10%. The bank is now targeting a return of 13% by 2028, although analysts currently see that goal as challenging.
Chief Executive Christian Sewing said the latest results provide a strong base for the next phase of the bank’s strategy.
Investigation clouds results
Despite the solid performance, the earnings were overshadowed by prosecutors’ searches this week, which revived long-standing concerns over money-laundering controls at Deutsche Bank. The lender has faced fines, regulatory scrutiny, and police action over similar issues in the past decade.
Frankfurt prosecutors said they are investigating unnamed individuals and bank employees. Sources familiar with the matter told Reuters the probe relates to transactions carried out between 2013 and 2018. Deutsche Bank said it is cooperating fully with authorities.
Quarterly performance and capital returns
In the fourth quarter alone, Deutsche Bank posted net profit of €1.3 billion, up sharply from €106 million a year earlier and above analyst expectations of roughly €1.12 billion.
The bank also authorized €1 billion in share buybacks and said it expects revenues to rise to about €33 billion in 2026, compared with €32.1 billion in 2025.
The investment banking division remained the largest contributor to revenue, posting a 5% increase during the quarter. Fixed-income and currency trading revenue rose 7%, beating expectations and broadly matching gains reported by major U.S. peers.
Revenue growth was more subdued in other areas. Retail banking revenue rose 3%, slightly below forecasts, while corporate banking revenue fell 2%, a somewhat steeper drop than analysts had expected.
Ratings outlook improves
Ratings agency S&P said last week that earnings at German banks are likely to continue improving beyond 2025, supported by increased lending tied to government spending on infrastructure and defense. In December, S&P upgraded Deutsche Bank’s outlook to positive.
