German Bank CEO Sewing believes institution is on track to meet yearly objectives.
Deutsche Bank Remains Optimistic Amid Trade Tensions
Despite the turbulent global economy and U.S. trade policies, Deutsche Bank, as per its CEO, Christian Sewing, isn't faltering from its annual targets. In a speech ahead of the bank's upcoming annual meeting in Frankfurt, Sewing expressed that the bank is on track and this gives them confidence amid the increased economic uncertainty.
The first-quarter results revealed that Deutsche Bank is performing well across all areas. Trump's trade threats in April had caused market turmoil and economic uncertainties, but Deutsche Bank has weathered this phase of volatility effectively. However, it remains to be seen how customer behavior will be impacted due to the current uncertain climate. Companies are currently hesitant to execute mergers, acquisitions, and IPOs. Sewing believes that the bank's diversified business model will serve as an advantage in this environment.
Deutsche Bank aims to achieve an equity return on investment of more than 10 percent and a cost-to-income ratio of less than 65 percent this year. In the first quarter, the German industry leader managed to achieve an equity return on investment of 11.9 percent and a cost-to-income ratio of 61 percent. This means the bank had to spend 61 cents to generate one euro of profit.
Sewing reaffirmed the bank's plans for further shareholder payouts this year. Deutsche Bank has applied to the European Central Bank (ECB) for a further share buyback in the second half of the year. The bank's common equity tier 1 (CET 1) ratio has been well above the bank's target of around 13.0 percent for some time. In the first quarter, it stood at 13.8 percent, close to 14 percent. Sewing made it clear that the bank aims to maintain its CET 1 ratio in the operational range of 13.5 to 14 percent.
Interpretation of Data (Enrichment)
Deutsche Bank's 2022 targets and progress can be analyzed effectively through the lens of its recent updates, especially as reported in 2025. The bank aimed to improve profitability metrics such as return on tangible equity (RoTE) and cost efficiency. Operational efficiency was a key focus, with targets including a €2.5 billion operational efficiency program. Capital efficiency targets involved reducing risk-weighted assets (RWA) by €25-30 billion by the end of 2025. The bank sought to improve its capital return to shareholders through dividends and share buybacks, reflecting strong capital generation.
By Q1 2025, the bank reported a 39% year-on-year increase in profit before tax and a 39% increase in post-tax profit. The post-tax return on average tangible shareholders' equity was 11.9%, better than the 10% target for 2025, and the cost/income ratio improved to 61.2%, better than the target of below 65%. The operational efficiency program progressed well, and the bank achieved the bulk of its savings targets. Capital efficiency was also strong, with the bank surpassing its RWA reduction targets. The bank delivered significant shareholder returns via dividends and buybacks and executed strategic transformation and digitalization initiatives to enhance client experience and operational effectiveness.
This progress reflects a clear trajectory of disciplined execution, strengthening profitability, capital efficiency, and shareholder value, in line with the bank’s financial and strategic goals set around 2022 and beyond.
Deutsche Bank's determination to achieve an equity return on investment of more than 10 percent and a cost-to-income ratio of less than 65 percent this year, as stated by its CEO, Christian Sewing, indicates a continued focus on financial business objectives. The bank's recent performance, including a first-quarter equity return on investment of 11.9 percent and a cost-to-income ratio of 61 percent, signals a promising outlook for the bank's business sector.
