Deutsche Bank Posts Fourfold Increase in Net Profit During 2021

Deutsche Bank today reported its highest full-year net profit since 2011. Profit before tax was €3.4 billion in 2021, up by more than three times year on year, also the best for ten years.

Net profit was €2.5 billion, a more than fourfold increase over 2020. Full-year 2021 results included transformation-related effects of €1.5 billion, up 21% versus 2020, as Deutsche Bank continued to execute its transformation programme.

Adjusted profit before tax, which excludes transformation-related effects and specific revenue items, more than doubled versus 2020 to €4.8 billion. Post-tax return on average shareholders' equity was 3.4%, up from 0.2% in 2020. Post-tax return on average tangible shareholders' equity (RoTE) was 3.8%, versus 0.2% in the prior year.  

In the fourth quarter, profit before tax was €82 million and net profit was €315 million, up 67% year on year. The fourth quarter tax benefit reflected a positive deferred tax asset valuation adjustment of €274 million resulting from the strong performance of Deutsche Bank's US operations.

Net revenues in the quarter were €5.9 billion, up 8% year on year, while noninterest expenses rose 11% year on year. This increase partly reflected a 17% year on year rise in transformation-related effects to €456 million. Adjusted profit before tax, which excludes these effects, was €527 million, down 15% year on year.

"In 2021, we increased our net profit fourfold and delivered our best result in ten years while putting almost all of our expected transformation costs behind us. All four core businesses performed at or ahead of our plan, and our reduction of legacy assets progressed faster than expected. We are delighted to be resuming capital distributions to our shareholders as we promised in the summer of 2019. Our transformation progress and financial performance in 2021 provide a strong step-off point to achieve our target of a return on tangible equity of 8% in 2022,"said Christian Sewing, Chief Executive Officer of Deutsche Bank.