Deutsche Bank reported record profits for the fourth quarter of 2025, with net profit attributable to shareholders reaching 1.3 billion euros (approximately $1.56 billion). This figure surpassed the analysts’ forecast of 1.12 billion euros, showcasing the lender’s robust financial performance. The group revenues for the quarter stood at 7.73 billion euros, aligning closely with the anticipated estimate of 7.72 billion euros.
The bank’s Common Equity Tier 1 (CET 1) capital ratio, a key indicator of solvency, was recorded at 14.2%, slightly lower than the 14.5% reported in the previous quarter, but notably up from 13.8% in the same quarter of 2024.
In a positive development, the credit impairment figure, which assesses the impact of potential loan losses, came in at 395 million euros, better than the analysts’ prediction of 408.3 million euros and a reduction from 417 million euros in the third quarter.
James Von Moltke, the bank’s chief financial officer, highlighted the exceptional performance in the fixed income and currencies businesses and the asset management unit, DWS. However, he did note that 2025 was a “slightly weaker year” for corporate activity, particularly in investment banking and capital markets, which faced slower growth.
In an interview with CNBC, Von Moltke expressed confidence in all four of the bank’s business divisions, suggesting they are well-positioned to thrive in 2026. He mentioned a positive outlook for the initial public offering (IPO) pipeline while acknowledging uncertainties regarding potential market corrections. He pointed to the current market sentiment as being optimistic, citing that, “absent some sort of disruptive events,” he believes the markets remain constructive.
Von Moltke also noted the potential benefits for households in Germany as a result of the country’s fiscal expansion, indicating that the corporate banking segment is set to leverage this investment wave.
This earnings announcement comes on the heels of a significant legal issue for Deutsche Bank, as German federal prosecutors have opened an investigation into alleged money laundering activities at the institution. Law enforcement officials conducted searches at the bank’s offices in both Frankfurt and Berlin. Von Moltke confirmed the bank’s full cooperation with the ongoing investigation, but refrained from commenting on specific transactions. He acknowledged media reports regarding transactions dating back to 2013 and 2018, suggesting that these may involve delayed or incomplete filings of suspicious activity reports that could have implications for potential money laundering.
He emphasized that while these transactions are historical, Deutsche Bank has made substantial investments in enhancing its financial crime risk management. “We think those investments have been really good to position the company well and protect ourselves, as well as the marketplace, from potential money laundering,” he stated.
