Deutsche Bank reports continued delivery of transformation in 2021 and clear targets for 2025

Δευτέρα, 14 Μαρτίου 2022 02:10
Deutsche Bank reports continued delivery of transformation in 2021 and clear targets for 2025

Annual Report: transformation drives strong performance in 2021

  • Highest profit since 2011 with net profit up fourfold to € 2.5 billion
  • Net revenue growth of 6% to € 25.4 billion
  • Improvements in post-tax RoTE¹ and cost/income ratio
  • Proposed capital distribution of approximately € 700 million to shareholders
  • 2021 compensation reflects cost discipline and reward for performance
    • Total compensation down 2% to € 9.9 billion due to efficiency measures
    • Variable compensation up 13% to € 2.1 billion, reflecting significantly improved results

Updated strategic and financial roadmap through 2025

  • Deutsche Bank to strengthen its position as ‘Global Hausbank,’ becoming first point of contact for a greater number of clients
  • Clear financial objectives for 2025, building on transformation:
    • Post-tax RoTE1 above 10% with cost/income ratio below 62.5%
    • Compound annual revenue growth of 3.5%-4.5% from 2021-25
  • ~€ 8 billion of capital distribution in respect of financial years 2021-2025²

Non-Financial Report: ahead of target and raising ambitions in sustainability

  • Sustainable financing and investment volumes rise threefold to € 157 billion
  • € 200 billion+ target accelerated to 2022 with €100 billion per year 2023-2025
  • Greenhouse gas emissions from own operations down 63% since 2019
  • Upgrades from four sustainability rating agencies

Investing in talent and diversity

  • 1,420 graduates and vocational trainees hired, up 10% over 2020
  • 20% of Management Board and 30% of Supervisory Board posts held by women
  • Target of at least 35% women in senior ranks by 2025
  • People Survey commitment index at highest level since 2012

“2021 was a pivotal year for Deutsche Bank”, said Christian Sewing, CEO. “We achieved our highest profit in ten years, made significant progress on our transformation journey, and we are working towards delivery on our 2022 objectives. Thanks to the outstanding efforts of our people, we delivered improved performance, set the course for a more sustainable business, and contributed in the communities we serve around the globe. As our strategy evolves, we can build on successful transformation to deliver sustainable growth and higher returns to shareholders through 2025.”

Deutsche Bank’s 2021 audited results, confirm delivery across all financial and strategic milestones of its transformation during 2021. There were no meaningful divergences from the bank’s unaudited results published at the Annual Media Conference on 27 January 2022.

In respect of events subsequent to December 31st 2021, the Annual Report describes Deutsche Bank’s exposures to Russia and Ukraine and the potential risks resulting from Russia’s invasion of Ukraine. On March 9, the bank reported that Russia exposures are very limited and set out measures taken to mitigate these exposures. Additional details are available on the bank’s website:

Transformation on target with highest profit since 2011

Deutsche Bank’s 2021 Annual Report confirms progress towards the goals of the bank’s transformation programme, launched in 2019. The benefits of transformation are evident in the bank’s 2021 financial performance:

  • Profit before tax up more than threefold to € 3.4 billion and net profit up fourfold to € 2.5 billion
  • Post-tax return on tangible equity (RoTE)¹ up from 0.2% to 3.8%, with Core Bank RoTE1 up from 4.0% to 6.4%
  • Cost/income ratio improved to 85%, from 108% in 2019
  • Net revenues up 6% year on year to € 25.4 billion
  • 97% of total anticipated transformation-related effects already recognised
  • Proposed capital distribution to shareholders of approximately € 700 million
  • Common Equity Tier 1 (CET1) capital ratio of 13.2%, in line with the bank’s commitment of above 12.5%

A clear strategic and financial roadmap through 2025

At its Investor Deep Dive on 10 March, Deutsche Bank outlined its strategic and financial roadmap through 2025, building on the progress of its transformation programme. Deutsche Bank aims to build on its position as ‘Global Hausbank’ by becoming the first point of contact in all financial matters for an even larger number of clients.

The bank aims to further strengthen cross-divisional collaboration through four leading core businesses, harness growth by driving its business strategies, and self-fund investments by enhancing efficiency.

If successful, this strategy would enable anticipated capital distribution to shareholders of around € 8 billion in respect of the financial years from 2021-2025, subject to the requisite approvals.

The bank published clear financial objectives for 2025:

  • Post-tax RoTE¹ of greater than 10%
  • Compound annual revenue growth of 3.5% -4.5% from 2021, implying net revenues of approximately € 30 billion in 2025
  • A cost-income ratio of below 62.5% with enhanced operating leverage through cost discipline enabling self-funded investments

The bank also published details of its capital plan through 2025. This includes:

  • Maintaining a CET1 capital ratio of approximately 13%, subject to a minimum threshold of 200 basis points above the expected Maximum Distributable Amount threshold of approximately 11%
  • Tangible equity retention to support business growth and implementation of the first elements of the expected Basel III regulatory capital changes effective January 1, 2025

The Management Board announced its intention to reach a total payout ratio of 50% of net income attributable to shareholders in 2025 and thereafter.

View Full Press Release


  • 19th Hydra Meeting 2017 - 9
    • 19th Hydra Meeting 2017 - 9

    • Watch Video

  • 19th Hydra Meeting 2017 - 6
    • 19th Hydra Meeting 2017 - 6

    • Watch Video

  • 19th Hydra Meeting 2017 - 4
    • 19th Hydra Meeting 2017 - 4

    • Watch Video

  • 19th Hydra Meeting 2017 - 2
    • 19th Hydra Meeting 2017 - 2

    • Watch Video

Tα cookies μας βοηθούν να σας παρέχουμε καλύτερες υπηρεσίες. Χρησιμοποιώντας τις υπηρεσίες μας συμφωνείτε στη χρήση των cookies.