Deutsche Bank Reports 92% Profit Decline as German Economy Struggles

Germany's largest lender faces legal costs, restructuring challenges, and economic headwinds, prompting job cuts and revised financial targets.

Deutsche Bank's Q4 2024 net profit dropped to €106 million, a 92% decline from €1.26 billion in Q4 2023, missing analyst expectations.
The bank cites €1.7 billion in litigation costs, including expenses tied to its 2018 Postbank acquisition, as a major factor in the profit slump.
Germany's ongoing economic contraction, higher energy prices, and competition from Chinese carmakers have further pressured Deutsche Bank's performance.
The European Central Bank reduced interest rates to 2.75% to address broader eurozone economic challenges, marking its fifth cut since summer 2024.
Deutsche Bank plans to cut jobs and streamline management to reduce costs, revising its cost-to-income ratio target to below 65% from the previous 62.5% goal.