Status: 02/02/2023 07:59 a.m
Deutsche Bank earned more in 2022 than it has in 15 years. The bottom line was more than five billion euros. The money house also benefited from a positive tax effect in the billions.
Thanks to higher interest rates and a thriving trading business, Deutsche Bank more than doubled its profits last year. The bottom line is that the shareholders of the DAX group made a profit of 5.02 billion euros. This corresponds to an increase of 159 percent, as the institute announced in the morning.
Deutsche Bank also benefited from a positive tax effect in the billions.
Surprisingly high return on equity
The largest German money house thus exceeded the expectations of the analysts, who had expected an average net profit of 4.17 billion euros. At 9.4 percent, the bank also clearly exceeded its self-imposed goal of achieving a return on equity of eight percent. Many analysts did not trust Deutsche Bank.
For comparison: in 2021, the Frankfurt institute had achieved a return of just 3.8 percent. For 2025, the Management Board has now set itself the goal of achieving a return of more than ten percent.
Higher interest rates boosted business
In the past fiscal year, higher interest rates and volatility in the markets had boosted trading in bonds and currencies in particular, with revenues rising 26 percent to 8.9 billion. The dealers thus saved the profits of the investment bank, which was not spared the slump in mergers and acquisitions.
Investment bankers’ revenues from underwriting and advisory business fell 62 percent year-on-year to EUR 1 billion. Loan loss provisions increased to EUR 1.2 billion in 2022 from EUR 515 million.
Sewing speaks of a success
With the final quarter of 2022, the three-year restructuring phase, with which CEO Christian Sewing led the institute out of the red, will also end. “The transformation of Deutsche Bank over the past three and a half years has been a success,” said Sewing.
Since 2019, investment banking has been heavily trimmed under his aegis, and the integration of Postbank into private customer business has been pushed ahead. “By focusing on our strengths, we have become significantly more profitable, diversified and efficient,” said Sewing.
Dividend increases by 50 percent
The shareholders are to share in the success with a dividend increased from 20 to 30 cents per share. Deutsche Bank shares had recovered strongly since their October low of EUR 7.25 and were able to regain the EUR 10 mark. At EUR 12.25, around 70 percent more was paid for a Deutsche Bank share than in October.