Annual Report Highlights: Business Expansion, Controlled Costs, and Increased Capital Disbursements in 2023
Deutsche Bank's 2023 Performance: Resilient Financial Growth, Cost Discipline, and Sustainability Focus
Deutsche Bank has announced its 2023 financial results, showcasing a strong performance under its Global Hausbank strategy. The bank reported a profit before tax of € 5.7 billion, a net profit of € 4.9 billion, and a post-tax return on average shareholders' equity (RoE) of 6.7% and on average tangible shareholders' equity (RoTE) of 7.4%.
The bank's financial performance was driven by a revenue growth of 6%, with 8% ex-specific items, and net inflows of € 57 billion. The bank's business volumes in sustainable finance and ESG investments have risen to € 279 billion cumulatively since the beginning of 2020.
Deutsche Bank emphasized greater cost discipline, with quarter-on-quarter cost numbers performing better than market consensus. The bank aims to achieve 100% of its € 2.5 billion cost savings target by year-end 2025 and is planning further efficiency programs toward 2028, including reengineering processes and digitalizing credit and trading operations.
In terms of compensation, fixed pay increased by 3% to € 7.9 billion, while performance-based variable compensation decreased by 6% to € 2.0 billion. The bank also invested € 52.6 million into Corporate Social Responsibility (CSR) projects, reaching 1.7 million people in 2023.
Deutsche Bank's commitment to sustainability is evident in its initiatives. The bank has reduced emissions from its own operations by 71% since 2019 and set a target for reducing total energy consumption by 30% below 2019 levels. The bank has also established a Nature Advisory Panel and joined #BackBlue, a UN-backed initiative to support ocean protection.
The bank has expanded its decarbonization plans by publishing net-zero targets for seven carbon-intensive sectors, representing 54% of the total financed emissions of the corporate loan book. The bank has reported progress on reducing financed emissions, including a 21% reduction in Scope 3 financed emissions from Oil & Gas (upstream) and a 15% reduction in Scope 3 physical emission intensity from the Automotive (light duty vehicles) sector.
Women accounted for 46.3% of the bank's total workforce in 2023, and the bank remains on track to meet its goal of promoting gender diversity in senior roles and in inclusion in talent development programs.
The bank's Common Equity Tier 1 (CET1) ratio stood at 13.7% at year-end 2023. Net interest expenses increased by 6%, with adjusted costs up by 3%. The bank has announced share buybacks of € 675 million in 2024 and proposed a dividend of € 0.45 per share in respect of 2023.
In summary, Deutsche Bank's 2023 performance reflects continued progress under its Global Hausbank strategy, with resilient financial performance, disciplined cost management, strong capital, and ongoing investments in sustainability and technology. The bank's focus on cost control, sustainability, and gender diversity is evident in its initiatives and financial results.
- Deutsche Bank continues to invest in sustainable finance, with business volumes in sustainable finance and ESG investments reaching € 279 billion cumulatively since the beginning of 2020.
- As part of its continued commitment to sustainability, Deutsche Bank has published net-zero targets for seven carbon-intensive sectors, representing 54% of the total financed emissions of the corporate loan book.
- In addition to its focus on sustainability, Deutsche Bank also invests in personal-finance and wealth-management, as evidenced by its net inflows of € 57 billion in 2023, making it an attractive choice for businesses and individuals alike in their financial endeavors.
