Website's Q1 2025 pre-tax earnings surge, nearly doubling to €5.3 billion
Deutsche Bank has announced its financial results for the second quarter of 2025, showcasing a significant improvement in profitability and a continued focus on sustainability.
The adjusted costs for the quarter stood at €5.0 billion, a 1% decrease year on year and in line with quarterly guidance. Noninterest expenses for the first half of 2025 were €10.2 billion, marking a 15% decrease from the prior year period. This reduction is largely attributed to a decrease in nonoperating costs, which were €49 million in the first half of 2025, a significant decrease from €1.9 billion in the prior year period.
The bank's profit before tax more than doubled to €5.3 billion in the first half of 2025, partly due to the non-recurrence of a significant Postbank litigation expense of €1.3 billion recorded in the second quarter of 2024. In the second quarter of 2025, Deutsche Bank recorded a modest release of €85 million from litigation provisions due to additional Postbank-related settlements, further reducing nonoperating costs.
Excluding Postbank litigation impacts, first-half 2025 profit before tax still rose 37% year-on-year due to strong revenue growth and stable adjusted costs. These developments were key drivers behind Deutsche Bank’s highest profits since 2007 and achieving or surpassing many 2025 financial targets.
Sustainability remains a priority for Deutsche Bank. Sustainable Financing and ESG investment volumes ex-DWS in the second quarter were €28 billion, the highest in the bank's businesses since 2021. The cumulative total of sustainable financing and ESG investment volumes since January 1, 2020, is €417 billion. The bank has defined its sustainable financing and ESG investment activities in the "Sustainable Financing Framework" and "our website ESG Investments Framework".
Deutsche Bank has also made strides in its commitment to human rights and supply chain transparency. The bank published its updated Human Rights Statement, the Supply Chain Due Diligence Act (SCDDA) Policy Statement, and the 2024 Modern Slavery and Human Trafficking Statement.
Customer deposits in the second quarter were €653 billion. The bank's Liquidity Coverage Ratio and Leverage ratio stood at 136% and 4.7% respectively at the end of the second quarter. The Common Equity Tier 1 (CET1) capital ratio was 14.2%.
The bank's workforce at the end of the first half of 2025 was 89,426 full-time equivalents (FTEs), with leavers offsetting strategic hiring and internalizations. Restructuring & Severance expenses for the first half of 2025 were €117 million, a 42% year-on-year decrease.
Further details on second quarter performance in the bank's businesses are available in the Interim Report of June 30, 2025. An Interim Report, Financial Data Supplement (FDS), presentation, and audio webcast for the analyst conference call are available at www.our website/quarterly-results.
A fixed income investor call will take place on July 25, 2025, at 15:00 CEST. The bank received the certificate of 'berufundfamilie +vielfalt' in Germany for being a family-friendly and inclusive employer. The bank held a workshop with rainforest nations' representatives on the development of carbon credits at the UN Climate Conference in Bonn (SB 61) and sponsored CDP's annual DACH disclosure workshop in Frankfurt.
[1] Deutsche Bank Press Release: Deutsche Bank Reports Strong Second Quarter Results
[2] Reuters: Deutsche Bank posts highest profit since 2007, beats financial targets
[3] Bloomberg: Deutsche Bank Beats Estimates on Profit, Says Postbank Litigation Costs Fell
- Deutsche Bank's profitability improvement and focus on sustainability is evident in their strong second quarter results, where they reported a €28 billion volume in sustainable financing and ESG investments alone.
- Asset management and sustainable finance play significant roles in Deutsche Bank's business strategy, as evidenced by their €417 billion cumulative total of sustainable financing and ESG investment volumes since 2020.
- In addition to their core financial services, Deutsche Bank is also committed to personal-finance matters, demonstrating this through their work in wealth management and private banking, as well as their focus on human rights and supply chain transparency.
- Investors interested in fixed income can tune into the Deutsche Bank investor call on July 25, 2025, while those interested in the bank's overall performance can access detailed reports and data on their website following the release of the quarterly results.
