Deutsche Bank Q4 Profit Down, Plans EUR 1.6 Bln Capital Distributions; To Cut 3,500 Jobs

(RTTNews) - German banking major Deutsche Bank AG (DB) reported Thursday that its fourth-quarter net profit attributable to shareholders was 1.26 billion euros, down 30 percent from last year's 1.80 billion euros.

Pre-tax profit was 698 million euros, down 10 percent from 775 million euros a year ago.

Net revenues of 6.66 billion euros went up 5 percent from prior year's 6.32 billion euros. Revenues grew 10 percent excluding specific items.

Deutsche Bank said it plans to increase both share repurchases and dividends by at least 50 percent year on year in 2024.

The bank plans to recommend 2023 dividends of 0.45 euro per share, up from 0.30 euro per share for 2022, at its Annual General Meeting in May 2024.

Deutsche Bank announced capital distributions of 1.6 billion euros in the first half of 2024 and now expects to exceed its goal of 8 billion euros in capital distributions to shareholders paid in 2022-26.

Subject to achievement of its published financial targets and to a payout ratio of 50 percent, the bank's updated guidance for a proposed dividend is 1.00 euro per share in respect of the financial year 2025.

Regarding its operational efficiency programme, the bank said it expects the programme's remaining savings of 1.6 billion euros to be driven by measures relating to infrastructure and technology efficiencies.

The vast majority of these measures are expected to be reflected in the adjusted cost run-rate in 2025.

The measures are expected to lead to a reduction of around 3,500 roles, mainly in non-client-facing areas. The bank has set a goal for a quarterly run-rate of adjusted costs of 5 billion euros and aims to operate with total costs of around 20 billion euros in 2025.

For more earnings news, earnings calendar, and earnings for stocks, visit rttnews.com.