Deutsche Bank on Thursday posted a bigger-than-expected drop in fourth quarter and 2024 full-year profit as legal provisions and restructuring costs eroded revenue gains at its global investment banking division.

Deutsche Bank delivered bad news on spending, and investors weren’t happy. Deutsche Bank on Thursday said it’s now targeting a cost-to-income ratio of below 65% this year, versus a previous target of below 62.5%, after a cost-to-income ratio of 76% in 2024.

Deutsche Bank AG said it plans to reduce management roles and cut headcount over coming years, after higher-than-expected costs marred its results in the final months of last year.Most Read from Bloom

Deutsche Bank on Thursday posted a bigger-than-expected drop in fourth quarter and 2024 full-year profit as legal provisions and restructuring costs eroded revenue gains at its global investment banking division.

German bank's net profits fell 36% last year to $2.91 billion, while revenues grew 4% compared to 2023 - Anadolu Ajansı

The lender’s better-than-expected performance in investment banking was overshadowed by a drop in profit and shares slumped as the company said it expects costs to remain heavy.

Q4 2024 Management View CEO Christian Sewing highlighted 2024 as a transition year, with significant progress made in transforming the business model. Pre-provision profit increased by 19% year-on-year when adjusted for specific items,

Germany’s largest lender by total assets will buy back shares and reported a worse-than-expected drop in profit due to well-flagged higher costs.