Deutsche Bank Announces Highest Annual Profit of 2022 for Fifteen Years

Deutsche Bank today released its financial results for the year of 2022, announcing its highest annual profit, both before and after tax, since 2007.

Profit before tax was €5.6 billion in 2022, up 65% over 2021. This reflected 7% of growth to to €27.2 billion in net revenues with a 5% year-on-year reduction in noninterest expenses, resulting in a cost/income ratio of 75%, down from 85% in 2021.

Net profit was €5.7 billion in 2022, more than double the prior year. This includes a positive year-end deferred tax asset valuation adjustment of €1.4 billion, compared to €274 million in the prior year, which reflected continued strong performance in the bank's US operations. Excluding the impact of this adjustment, the effective tax rate would have been 24% for 2022.

Post-tax return on average tangible shareholders' equity (RoTE) was 9.4%, up from 3.8% in 2021. Post-tax RoE was 8.4%, up from 3.4% in the prior year. Diluted earnings per share were €2.37, up from €0.93 in 2021, and management intends to recommend a dividend of €0.30 per share for 2022, up from €0.20 per share for 2021, to the 2023 Annual General Meeting.

In the fourth quarter of 2022, profit before tax was €775 million, up more than ninefold from €82 million in the fourth quarter of 2021, reflecting 7% year-on-year growth in net revenues with a 7% year-on-year reduction in noninterest expenses. The quarter was positively impacted by a gain of approximately €310 million on the sale of Deutsche Bank Financial Advisors in Italy.

Net profit in Q4 2022 was €2.0 billion, up from €315 million in the fourth quarter of 2021, and reflects the aforementioned positive tax impact. Excluding this benefit, the effective tax rate would have been 29% for the quarter. Fourth-quarter post-tax RoTE was 13.1%, up from 1.1% in the prior year quarter, and post-tax RoE was 11.7%.

Having fulfilled its de-risking and cost reduction mandate from 2019 through end-2022, the Capital Release Unit will cease to be reported as a separate segment with effect from the first quarter of 2023. Its remaining portfolio, resources and employees will be reported within the Corporate & Other (C&O) segment.

"Our 2022 results demonstrate the benefits of Deutsche Bank's transformation efforts", said James von Moltke, Chief Financial Officer. "We have delivered revenue growth in our core businesses and continued cost reductions. Our risk provisions are in line with guidance despite challenging conditions during the year. Focused de-risking of our balance sheet has contributed to our solid capital ratio and the completion of the Capital Release Unit journey marks a major milestone in our transformation execution. All of this demonstrates good momentum on the path towards our 2025 objectives."