LONDON – Deutsche Bank on Thursday defied market expectations to post a profit for the fourth quarter of 2021 as investment banks’ earnings rose.
The German lender said earnings attributable to shareholders were 145 million euros ($162.7 million) for the final three months of the year – nearly triple earnings for the same period in 2020 and the sixth quarter of earnings in Consequence.
According to estimates by Refinitiv, analysts had expected a quarterly loss of 127.58 million euros.
The quarterly figures brought Deutsche Bank’s net income for 2021 to EUR 1.94 billion after a strong first half of the year. This was up from 113 million euros in 2020 and above analysts’ forecasts of 1.79 billion euros.
However, Deutsche Bank’s investment banking arm saw quarterly revenue rise to 1.9 billion euros, up 1% year-on-year as a 14% decline in fixed income and currency (FIC) trading was offset by a 29% growth in issuance and consulting income was offset .
Here are the other quarterly highlights:
- Loan loss provisions were €254 million compared to €251 million in the fourth quarter of 2020.
- The Common Equity Tier 1 (CET1) ratio – a measure of banks’ solvency – was 13.2% compared to 13.6% at the end of last year.
- Total net sales were 5.9 billion euros compared to 5.45 billion euros in the same period of 2020.
For the full year, net profit reached 2.5 billion euros, the bank’s highest since 2011.
“In 2021, we quadrupled our net income and delivered our best result in ten years, while weathering almost all of our anticipated transformation costs,” Deutsche Bank Chief Executive Officer Christian Sewing said in a statement.
“All four core businesses have met or exceeded our targets and our legacy clean-up has progressed faster than expected.”
Sewing said this progress and financial performance provides a “strong starting point” to meet the bank’s target of an 8% return on tangible equity in 2022.
This is breaking news and will be updated shortly.