Deutsche Bank Q4 Earnings Decline, Revenues & Expenses Rise Y/Y

Deutsche Bank DB reported fourth-quarter 2024 earnings attributable to its shareholders of €106 million ($113 million), down 92% year over year.Find the latest earnings estimates and surprises on the Zacks Earnings Calendar.The Germany-based lender reported a profit before tax of €583 million ($621.9 million), down 16.5% year over year. The reported figure included € 594 million ($633.6 million) of specific litigation items related to the Postbank takeover. Results were negatively impacted by a rise in expenses. However, lower provision for credit losses and a strong capital position were tailwinds.Deutsche Bank’s Revenues & ExpensesThe bank generated net revenues of €7.2 billion ($7.7 billion), up 8% year over year. This upside was primarily driven by strong growth in commissions and fee income and broadly stable net interest income.Non-interest expenses of €6.2 billion ($6.6 billion) increased 14% from the prior-year quarter. The rise was primarily due to an increase in general and administrative expenses.Adjusted non-interest expenses (excluding nonoperating items) were € 5.3 billion, down 1% from the prior year quarter.Provision for credit losses was €420 million ($448 million), down 14% from the prior-year quarter.DB’s Segmental PerformanceCorporate Bank: Net revenues for the segment were €1.9 billion ($2 billion), down 2% year over year. The results were hurt by lower net interest income, a decrease in Institutional Client Services and Business Banking revenues.Investment Bank: This segment’s net revenues totaled €2.4 billion ($2.6 billion), up 30% year over year. The upside was primarily driven by growth across Fixed Income and Currencies, and Origination & Advisory.Private Bank: Net revenues of €2.4 billion ($2.6 billion) were essentially flat year over year.Asset Management: Net revenues of €709 million ($756.3 million) rose 22% year over year. An increase in performance and transaction fees led to the rise.Corporate & Other: The segment reported negative net revenues of €99 million ($105.6 million) compared with negative $64 million in the prior-year quarter.Deutsche Bank’s Capital PositionDB’s Common Equity Tier 1 capital ratio was 13.8% as of Dec. 31, 2024, up from the year-ago quarter’s 13.7%.The leverage ratio on a fully loaded basis was 4.6%, up from the year-ago quarter's 4.5%.DB’s 2025 OutlookDeutsche Bank expects to achieve €32 billion ($34.1 billion) in revenues for 2025, reaffirming confidence in its revenue ambition. This aligns with its 2021-2025 CAGR target of 5.5-6.5%, supported by strong 2024 performance and continued execution of its growth strategy.Provision for credit losses is projected to be in the range of €340-€400 million ($362.7– $426.7 million) per quarter.Our Viewpoint on Deutsche BankA strong balance sheet position and revenue growth will likely support Deutsche Bank's financials. Also, the company’s strong capital position aids sustainable capital distribution moves. However, an elevated expense base is likely to hurt its bottom-line growth.Deutsche Bank Aktiengesellschaft Price, Consensus and EPS Surprise Deutsche Bank Aktiengesellschaft price-consensus-eps-surprise-chart | Deutsche Bank Aktiengesellschaft QuoteThe company currently has a Zacks Rank #4 (Sell).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Earnings Dates of Other Foreign BanksBarclays BCS is expected to report fourth-quarter and 2024 results on Feb. 18.Over the past seven days, the Zacks Consensus Estimate for BCS’ 2024 earnings has remained unchanged at $1.53 per share, indicating a rise of 10.9% from the prior-year quarter.HSBC Holdings HSBC is expected to announce fourth-quarter and 2024 results on Feb. 19.Over the past seven days, the Zacks Consensus Estimate for HSBC’s 2024 earnings has remained unchanged at $6.67 per share, indicating a rise of 5.5% from the prior-year quarter.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Barclays PLC (BCS): Free Stock Analysis Report Deutsche Bank Aktiengesellschaft (DB): Free Stock Analysis Report HSBC Holdings plc (HSBC): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks