Deutsche Bank has struck an optimistic tone for 2025, forecasting increased revenue across its investment bank and three other core business units despite a sluggish German economy and ongoing challenges in the automotive sector, according to Reuters.
The outlook, detailed in the bank’s latest annual report, underscores CEO Christian Sewing’s efforts to meet ambitious profit and cost targets in a pivotal year for the once-struggling lender.
While Deutsche Bank reported revenue growth in 2024, overall profits declined due to a significant rise in bonuses and banker pay, which were disclosed for the first time in the annual report. The bank’s bonus pool, meanwhile, increased by approximately 25% to €2.5 billion, driven largely by a 15% revenue surge in its investment banking division.
Sewing earned an estimated €9.75 million ($10.61 million) in 2024, up from €8.75 million the previous year, though the figures are not directly comparable due to changes in bonus calculations. The bank’s highest-earning employee, whose identity was not disclosed, received between €17 million and €18 million in compensation.
Deutsche Bank acknowledged that Germany’s economy is expected to lag behind broader eurozone growth in 2025. The automotive industry, a cornerstone of the German economy with major players like Volkswagen and Mercedes-Benz, was highlighted as a key risk. The sector faces challenges including potential US tariffs, a slow transition to electric vehicles, and intensifying competition from China.
Another area of concern is Deutsche Bank’s exposure to the commercial real estate sector, which has been a recurring risk in recent years. While the bank noted that challenges persist, it expressed cautious optimism that the sector is poised to stabilise.
Deutsche Bank’s forecast for 2025 anticipates a slight slowdown in the US economy, while eurozone growth is expected to accelerate. However, the bank warned that Germany’s economic performance is likely to trail behind its European peers.
