In 2023, Deutsche Bank recorded revenues of €28.9bn ($31.2bn), a 6% growth year-on-year, with net inflows of €57bn across the private bank and asset management arms.
However, Deutsche Bank also stated that it expects a reduction of around 3,500 jobs over the next year, mainly in non-client facing areas.
Profit for the year, before tax, totalled €5.7bn, up 2% from the previous year, while net profit was down 14% in 2023 for Deutsche Bank.
The fourth-quarter pre-tax earnings was €698m, down 10% from the fourth quarter of 2022.
In addition, net revenues were €6.7bn and net inflows from private banking and asset management handed €18bn to Deutsche Bank over Q4 2023.
The bank’s year-on-year growth was principally driven by nonoperating items related to strategy execution: impairments of goodwill and other intangible assets increased to €233m, up from €68m in 2022, owing solely to a goodwill impairment charge related to the acquisition of Numis.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below formBy GlobalData
Continuing, Deutsche Bank aims to raise share repurchases and dividends by at least 50% year on year in 2024.
The bank has got regulatory clearance for an additional €675m share repurchase, which it intends to complete in the first half of 2024, after completing €450m in share repurchases in 2023.
Deutsche Bank after 2023
At its Annual General Meeting in May 2024, Deutsche Bank expects to suggest 2023 dividends of €900m, or €0.45 per share, an increase from €0.30 per share in 2022.
After raising its capital projection by €3bn in October 2023, the bank is well positioned to exceed its capital distribution goal of €8bn for the fiscal years 2021-25, which will be paid in 2022-26.
Moreover, the fourth quarter of 2022 saw a €305m gain on the sale of Deutsche Bank Financial Advisers in Italy.
In 2023, investment bank net revenues were €9.2bn, down 9% year on year, or 8% removing the aforementioned DVA impact.
Fixed Income and Currencies (FIC) sales were € 8.0bn, an 11% decrease from the previous year’s solid performance. Revenues in foreign exchange, rates, and emerging markets were much lower, reflecting lower levels of volatility and market activity; this development was partially offset by high growth in credit trading.
Revenues in the private bank Germany increased 14% to €6.1bn, while those in the international private bank fell 8%, or 3% without particular items.
Assets under management increased by €40bn to €559bn for the year, owing mostly to €29bn in net inflows.
Private Bank net revenues were €2.4bn in the fourth quarter, a 4% decrease year on year but an increase of 9% ex-specific items. Furthermore, private bank Germany revenues increased by 10% to €1.5bn, while international private bank revenues were €907m, a 21% decrease but an 8% increase ex-specific factors.
Deutsche Bank chief executive officer Christian Stewing stated: ‘‘Our performance in 2023 underlines the strength of our Global Hausbank strategy as we help our clients navigate an uncertain environment. We have achieved our highest profit before tax in 16 years, delivered growth well ahead of target and maintained our focus on cost discipline while investing in key areas. Our strong capital generation enables us to accelerate distributions to shareholders. This gives us firm confidence that we will deliver on our 2025 targets.’’
In 2023, Deutsche Bank made additional progress on its €2.5bn operational optimisation plan.