Deutsche Bank warns of costs with low profits

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Deutsche Bank reported that the profits were decreased to the last quarter of 2024 and investors warned that the costs in 2025 would be higher than expected.

The largest lender in Germany said on Thursday that he had missed the cost goals for 2024 because it suffered a sharp rise in litigation fees and loan losses higher than expected.

Deutsche said that it is now targeting cost-cost income-a main criterion for efficiency-less than 65 percent this year.

The new goal is higher than its previous goal of maintaining costs less than 62.5 per cent of income, but it still represents much better than the 76 % of the 76 percent achieved in 2024.

The shares decreased by 6 percent in early trading on Thursday.

Deutsche Its goal of maintaining costs – with the exception of litigation fees and restructuring expenses – was absent less than 20 billion euros in 2024.

In the fourth quarter, the net profit, which is attributed to shareholders, decreased to 106 million euros, by 92 percent in the same period a year ago and much less than the number of 380 million euros expected by analysts. The bank blames 329 million euros linked to a long -term sales scandal in the Polish mortgage market.

sewing He still has a “firm confidence” that the lender will achieve his goal of raising the revenues on concrete property rights to more than 10 percent in 2025, after decreasing to 4.7 percent last year. Andrew Combs, Citibank analyst, wrote that reaching a 10 percent goal “is increasingly difficult.”

The sewing 2025 described as a “year of reckoning”, adding that the bank wanted to “lay the foundations” to become the “European champion”.

He said that Deutsche was still aiming to generate revenues of more than 32 billion euros in 2025, adding that the lender had started “a strong start … this year.”

The bank announced the program of re -purchasing new shares worth 750 million euros and suggested that it distribute profits of 0.68 euros per share, an increase of 0.45 euros per share compared to 2023 raising payments to shareholders from 2024 to 2.1 billion euros.