FRANKFURT (Reuters) -Deutsche Bank on Thursday posted a bigger-than-expected drop in fourth quarter and 2024 full-year profit as legal provisions and restructuring costs eroded revenue gains at its global investment banking division.
Deutsche, Germany’s largest lender, also abandoned a key cost target.
The bank recorded net profit attributable to shareholders of 106 million euros ($110.43 million) in the quarter, down from a profit of 1.26 billion euros a year earlier. It is worse than analyst expectations for a profit of around 380 million euros.
For the full year, Deutsche recorded profit of 2.70 billion, down from 4.21 billion euros for 2023. That was worse than expectations of profit of nearly 3 billion euros.
The results set the stage for a crucial year for Deutsche as Chief Executive Officer Christian Sewing seeks to meet a series of ambitious profit and cost targets he has set to further underpin the once-troubled bank. Some analysts have been sceptical that Deutsche will reach all its goals.
The bank on Thursday abandoned a cost target for 2025. It now aims for a cost-to-income ratio of below 65%, compared with previous plans for less than 62.5%.
($1 = 0.9599 euros)
(Reporting by Tom Sims and Matthias Inverardi, Editing by Miranda Murray and Rachel More)
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