From NBCUniversal:

Deutsche Bank reported a net profit of 1.3 billion euros in the fourth quarter, beating analyst expectations. The German lender plans to return 1.6 billion euros to shareholders in 2024, indicating a strong financial performance. It also announced an ambitious operational efficiency program, aiming to reduce costs and improve profitability in the coming years.

Deutsche Bank revealed plans to increase share buybacks and dividends by 50%, returning 1.6 billion euros to shareholders. The bank aims to complete an additional share buyback of 675 million euros in the first half of the year. These moves highlight the company’s commitment to delivering value to its investors.

For the full year 2023, Deutsche Bank reported 4.2 billion euros in net income attributable to shareholders, exceeding analyst expectations. The bank’s CFO, James von Moltke, expressed excitement about the momentum in the business, especially in the investment bank and fixed income and currencies franchise.

As part of its operational efficiency program, Deutsche Bank expects to cut 3,500 jobs, mainly in “non-client-facing areas,” as it looks to enhance profitability and reduce costs. The program aims to reduce the quarterly run-rate of adjusted costs to 5 billion euros, with total costs falling to around 20 billion in 2025.

Deutsche Bank CEO Christian Sewing highlighted the strength of the bank’s Global Hausbank strategy, which helped achieve the highest profit before tax in 16 years. The bank delivered growth ahead of target, maintained cost discipline, and invested in key areas, showing confidence in its 2025 targets.

In addition to a strong financial performance, Deutsche Bank reported a 5% year-on-year increase in net revenues to 6.7 billion euros, with annual total reaching 28.9 billion euros. The bank also noted net inflows of 18 billion euros across its Private Bank and Asset Management divisions.

Deutsche Bank has emerged as a subject of merger speculation, but CEO Christian Sewing indicated that acquisitions are not a “priority”. This comes amid concerns about bank profitability and reports that the German government is considering a sale of some of its company holdings.

Deutsche Bank has been a subject of merger speculation, but CEO Christian Sewing indicated that acquisitions are not a “priority”. This comes amid concerns about bank profitability and reports that the German government is considering a sale of some of its company holdings.



Read more: Deutsche Bank smashes profit estimates and boosts shareholder returns