 "Deutsche Bank")
Deutsche Bank on Thursday posted a 30 per cent drop in fourth-quarter profit as restructuring costs and other one-off expenses outweighed revenue gains, but the fall was not as steep as analysts feared.
The bank also announced plans for 1.6 billion euros ($1.73 billion) in share buybacks and dividends and raised its outlook for revenue growth. Deutsche plans to trim around 3,500 jobs.
Net profit attributable to shareholders was 1.26 billion euros in the quarter. That compares with profit of 1.803 billion euros a year earlier and is better than analyst expectations for profit of around 700 million euros.
Full-year profit fell to 4.21 billion euros from 5.03 billion euros a year earlier, beating analyst expectations for 3.664 billion.
The drop in quarterly profit was the largest since earnings at Germany's largest bank stabilised earlier in the decade after years of losses.
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But the figures nevertheless mark the 14th consecutive quarter and the fourth consecutive year of profits - notable streaks in the black for Deutsche.
The earnings set the stage for what could be a more difficult 2024 for banks, with possible interest rate cuts later this year eroding the interest income that has proven a boon to banks in recent quarters.
That has helped German lenders ride out a weak economy at home, with the nation's output shrinking last year and a closely watched survey of business morale in January unexpectedly worsening.
Germany's financial regulator BaFin warned recently that 2024 will be less rosy for bank profits as a property crisis weighs in Europe's largest economy and loans go bad.
Still, Deutsche was optimistic, raising its compounded annual growth rate target to between 5.5 per cent and 6.5 per cent, up from between 3.5 per cent to 4.5 per cent.
Deutsche CEO Christian Sewing said he had "firm confidence" the bank could meet its 2025 targets.
