Website's Q1 2025 pre-tax earnings surge, nearly doubling to an impressive €5.3 billion.
Deutsche Bank Reports Strong Profit Growth and Solid Financial Position in H1 2025
Deutsche Bank has reported a significant boost in profit growth for the first half of 2025, with a remarkable 1,115% year-over-year increase in net profit for Q2 2025. This turnaround was primarily driven by the absence of a one-time €1.3 billion Postbank litigation provision that had negatively impacted profits in the same quarter of 2024.
In Q2 2024, Deutsche Bank recorded significant litigation costs related to the Postbank takeover, with a provision of €1.3 billion booked. However, in Q2 2025, these litigation-related expenses did not recur, allowing for a drop in non-interest expenses by 26% year-over-year and improved profitability.
Excluding one-time impacts like the Postbank provision, Deutsche Bank still delivered robust underlying profit growth of 34% year-over-year, supported by cost discipline and steady net interest income. The bank’s capital strength improved slightly, with the Common Equity Tier 1 ratio rising to 14.2%.
The Liquidity Coverage Ratio (LCR) was 136% at the end of the second quarter, above the regulatory requirement of 100% and representing a surplus of €62 billion. The Net Stable Funding Ratio was 120%, at the high end of the bank's target range of 115-120% and representing a surplus of €107 billion.
The workforce at the end of the first half of 2025 was 89,426 full-time equivalents (FTEs), materially unchanged from the end of the first half of 2024. Restructuring & Severance expenses in the first half of 2025 were €117 million, down 42% year on year.
Customer deposits in the second quarter were €653 billion, down from €665 billion in the first quarter and up from €641 billion in the second quarter of 2024. Provision for credit losses in the second quarter was €423 million, or 36 bps of average loans, down 10% compared to the first quarter of 2025 and 11% from the second quarter of 2024.
Deutsche Bank's commitment to sustainable financing and ESG investment continues to grow. Sustainable Financing and ESG investment volumes in the Private Bank since January 1, 2020 reached €74 billion. Sustainable Financing and ESG investment volumes ex-DWS in the second quarter were €28 billion, the highest in the bank's businesses since 2021, bringing the cumulative total since January 1, 2020 to €417 billion.
Sustainable Financing and ESG investment volumes in the Investment Bank since January 1, 2020 reached €253 billion, while in the Corporate Bank, they reached €81 billion. Nonoperating costs in the first half of 2025 were €49 million, significantly lower than the prior year period due to the non-recurrence of Postbank litigation expenses.
The Leverage ratio was 4.7% at the end of the second quarter, up from 4.6% in the first quarter. The bank’s strategic repositioning toward operational efficiency and resilience in a recovering German economy is evident in these results.
In summary, the elimination of the 2024 Postbank litigation provision as a non-recurring cost in 2025 was a major factor contributing to Deutsche Bank’s substantial profit growth year-over-year, alongside efficiency improvements and core business resilience.
- Deutsche Bank's commitment to sustainable finance has resulted in an impressive Sustainable Financing and ESG investment volume of €74 billion in its Private Bank since January 2020.
- The bank's wealth management businesses, including Private Banking, have seen the highest Sustainable Financing and ESG investment volumes in the second quarter of 2025 since 2021, amounting to €28 billion.
- Asset Management, a crucial part of Deutsche Bank's business, has seen Sustainable Financing and ESG investment volumes of €253 billion in the Investment Bank and €81 billion in the Corporate Bank since January 2020.
- With a solid financial position and strong profit growth in H1 2025, Deutsche Bank continues to focus on personal-finance management and wealth-management services, integrating sustainable finance practices into its business strategy.
