Increased earnings for our website in the first half of 2025, as profits before tax soar to an impressive €5.3 billion, representing a substantial 2x increase.
Deutsche Bank has reported a robust performance in the first half of 2025, with significant improvements in various key areas, such as sustainable financing, liquidity, and capital ratios. However, it's important to note that these results are largely a reflection of the non-recurrence of a significant litigation provision related to the Postbank takeover, which had a substantial impact on the bank's profit and expenses in the same period last year.
Workforce Stays Steady
The bank's workforce remained relatively unchanged, with 89,426 full-time equivalents (FTEs) at the end of the first half of 2025, compared to the same period in 2024.
Sustainable Financing and ESG Investment Volumes Soar
Sustainable Financing and ESG investment volumes have seen a notable increase since January 1, 2020. As of the end of the first half of 2025, these volumes stood at €417 billion, up from €389 billion at the end of the first quarter of 2025. Notably, the second quarter saw the highest volumes in the bank's businesses since 2021, with €28 billion in Sustainable Financing and ESG investment volumes ex-DWS.
Corporate Bank Leads the Way
The Corporate Bank has been a key driver of this growth, with a cumulative total of sustainable financing since January 1, 2020, at €81 billion. Meanwhile, the Investment Bank and the Private Bank have also made significant strides, with cumulative totals of sustainable financing of €253 billion and €74 billion, respectively.
Liquidity and Capital Ratios Strengthen
The bank's liquidity position has also improved, with the Liquidity Coverage Ratio standing at 136% at the end of the second quarter, up from 134% at the end of the first quarter. The Common Equity Tier 1 (CET1) capital ratio also increased, standing at 14.2% at the end of the second quarter, up from 13.8% in the first quarter of 2025.
Leverage Exposure Decreases Slightly
Leverage exposure decreased slightly, with €1,276 billion at the end of the second quarter, compared to €1,302 billion in the first quarter of 2025 and €1,262 billion at the end of the first half of 2024.
Customer Deposits Dip Slightly
Customer deposits saw a slight decrease, standing at €653 billion in the second quarter, down from €665 billion in the first quarter, partly due to foreign exchange headwinds.
Nonoperating Costs Plummet
Nonoperating costs for the first half of 2025 were €49 million, significantly lower than the prior year period which included €1.9 billion in Postbank litigation expenses. Excluding these one-off litigation impacts, first-half profit before tax still grew by 37% year on year, driven by 6% revenue growth.
Profit Before Tax More Than Doubles
Profit before tax for H1 2025 was €5.3 billion, more than double the €2.4 billion reported in H1 2024. This strong increase mainly reflects the non-recurrence of a €1.3 billion litigation provision related to the Postbank takeover that was booked in Q2 2024, compared to a smaller provision release of €85 million in Q2 2025.
Noninterest Expenses Fall Dramatically
Noninterest expenses fell 15% year-on-year to €10.2 billion, largely due to the absence of the large litigation provision charge from the prior year. Excluding Postbank litigation impacts, adjusted costs were flat at €10.1 billion.
Restructuring & Severance Expenses Decrease
Restructuring & Severance expenses for the first half of 2025 were €117 million, down 42% year on year.
Bank Anticipates Further Improvements
The bank expects additional mitigation through increasing external rating coverage of currently unrated corporate clients, balance sheet optimization, and further SVA-driven activities by 2033.
In summary, while Deutsche Bank's strong performance in the first half of 2025 is undeniable, it's important to consider the significant impact of the non-recurrence of the Postbank litigation costs on these results. Excluding these one-off costs, Deutsche Bank still showed solid profit and revenue growth but the litigation costs had been a major drag in the prior year.
[1] Deutsche Bank AG, Interim Report Q2 2025, p. 10 [2] Deutsche Bank AG, Interim Report Q2 2025, p. 13 [3] Deutsche Bank AG, Press Release, Q2 2025 Results, July 29, 2025
- Deutsche Bank's focus on sustainable finance has been evident, with ESG investment volumes reaching €417 billion as of the end of the first half of 2025, a significant increase from €389 billion at the end of Q1 2025.
- The Private Bank, alongside the Investment Bank and Corporate Bank, have all made significant strides in sustainable financing, with cumulative totals of €74 billion, €253 billion, and €81 billion, respectively, since January 1, 2020.
- In addition to sustainable financing, Deutsche Bank has excelled in areas like wealth management, with its asset management business and personal-finance services playing a vital role in its overall performance.
- Moving forward, Deutsche Bank anticipates further improvements through initiatives such as increasing external rating coverage of currently unrated corporate clients, balance sheet optimization, and further SVA-driven activities, aimed at strengthening its position in the business of finance.
