Deutsche Bank reported a full-year 2024 profit before tax of €5.3 billion on 30 January, a 7% decline from the prior year, as the German lender absorbed €1.7 billion in specific litigation charges — including costs related to the settlement of the long-running Postbank acquisition dispute — that offset revenue growth. The results were published on the bank's website.

Revenues grew 4% to €30.1 billion, in line with the bank's own guidance, led by a 15% rise in Investment Bank revenues to €10.6 billion, which more than offset declines of 3% in the Corporate Bank and 2% in the Private Bank. Net profit for the year came in at €3.5 billion, down from €4.9 billion in 2023, a decline that reflects both the specific litigation charges and the non-recurrence of a €1.0 billion positive deferred tax asset valuation adjustment that had boosted 2023.

LITIGATION CHARGES

Excluding nonoperating costs of €2.6 billion, which consisted primarily of the €1.7 billion in specific litigation charges, profit before tax rose 16% to €7.9 billion, according to the bank.

The Postbank-related litigation has featured as a recurring item in Deutsche Bank's recent financial reporting. The bank acquired Postbank in 2010, and a dispute with former minority shareholders, who argued they had been underpaid in the 2010 takeover offer, has been working through German courts for a number of years. Deutsche Bank reached settlements with most of the plaintiffs in 2024.

Revenue growth of 4% across the group was driven chiefly by the Investment Bank. The investment bank benefited from elevated activity in fixed income, currencies and financing transactions, while Corporate Bank revenues slipped 3% to €7.5 billion as deposit margins normalised.

CAPITAL RETURNS AND DIVIDEND PLANS

Despite the lower net profit, Deutsche Bank outlined plans for €2.1 billion in capital distributions to shareholders in 2025. The proposed dividend of €0.68 per share represents a 50% increase on the prior year.

The €2.1 billion total distribution plan encompasses the dividend as well as additional buyback activity.