Germany-based financial services giant, Deutsche Bank published its financial results for 2021 today. The bank reported a significant jump in its net profit as the number surpassed €2.5 billion in 2021, which is the highest level since 2011.
In terms of profit before tax, the bank reported a figure of €3.4 billion in the last year. Deutsche Bank witnessed strong growth across all of its four core businesses. In Q4 of 2021, the bank posted a net profit of €315 million, which is up 67% compared to the same period last year.
The stock price of Deutsche Bank jumped substantially after the latest results. Christian Sewing, the Chief Executive Officer of Deutsche Bank, highlighted the transformation progress of the bank in the last 12 months.
“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,” Sewing said.
Capital Distributions
As part of the bank’s commitment to return €5 billion of capital to shareholders over time, Deutsche Bank recently announced several actions to complete its mission. Additionally, the management board has decided to initiate a €300 million share repurchase program. The program is expected to be completed during the first half of 2022.
“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,” Deutsche Bank’s CEO added.
In an effort to boost its presence in Africa and the United Kingdom, Deutsche Bank hired former bankers from HSBC and BNP Paribas in November last year.
