Deutsche Bank

Profiting From Chaos

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Deutsche Bank's co-CEO's can breath a sigh of relief - for now.
  • Why it matters

    Why it matters

    The profits at Deutsche Bank may buy top managers more time to push through a major reorganization this year.

  • Facts


    • Deutsche Bank earned €441 million in the fourth quarter after a €1.4 billion loss a year earlier.
    • Investment banking was among the most profitable divisions, posting net income of €516 million.
    • Deutsche Bank’s private and retail clients business earned just €55 million.
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The euro zone’s debt crisis has paid off for Deutsche Bank in a big way – at least for one quarter.

Deutsche Bank’s shares rose more than 3 percent on Thursday as Germany’s largest bank posted a surprise fourth-quarter profit of €441 million ($498 million), helped in part by its investment banking team making the right bets on Europe’s economy – and especially on what the European Central Bank would do about it.

The bank, which has struggled mightily to turn a profit over the last year and is in the middle of a major strategic review of its businesses, said it was “encouraged” by the results it has seen over the final three months of the year, which compared to a €1.4 billion loss in the fourth quarter of 2013.

For the year, the bank said it earned a profit of €1.7 billion, up from €0.7 billion in 2013, but still well below the profits seen by many of its U.S. peers. JP Morgan, for example, posted a record $22 billion profit for the whole of 2014.

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