Deutsche Bank posted a profit attributable to shareholders of 113 million euros or $136 million for the year ended December 2020, according to the company’s press release. The profit was up from a loss of 5.72 billion euros, a year earlier and better than expected loss of 300 million euros.
- Deutsche Bank’s positive earnings is the first time the company has posted an annual profit since 2014 aided by volatile markets, which helped its investment bank boom.
- Bond trading net revenues rose by 32% year on year to 9.28 billion euros, which boosted revenues.
- Deutsche Bank’s profitability has also been boosted by restructuring as it cut 18,000 jobs in 2019.
- The bank made 51 million euros of profit attributable to shareholders in Q4, up from a loss of 1.6 billion euros in the same period in 2019.
- Fourth-quarter net revenue was 5.45 billion euros or $6.54 billion, 2% higher from a year earlier and more than expected 5.43 billion.
- Common equity Tier 1 capital ratio was 13.6% in Q4, more than expected 13.35%
- Across the year, Deutsche Bank set aside 1.79 billion euros to cover credit losses, including 251 million euros in the fourth quarter.
- The push to profitability comes even as Deutsche Bank has been accused of money-laundering, fined over fixing Libor, and was recently caught up in the Wirecard fiasco.
- Deutsche Bank CEO Christopher Sewing is confident the company will have a good 2021 and has built firm foundations for sustainable profitability.
Deutsche Bank stock is currently declining. DBK is down 1.32%
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