Deutsche Bank AG (ETR:DBK) today posted its financial results for the fourth quarter and full year 2021, delivering its highest full-year net profit since 2011. Profit before tax was €3.4 billion in 2021, up by more than three times year on year, also the best for ten years.
Net profit for the full year of 2021 was €2.5 billion, a more than fourfold increase over 2020. Full-year 2021 results included transformation-related effects of € 1.5 billion, up 21% versus 2020, as Deutsche Bank continued to execute its transformation program.
Adjusted profit before tax, which excludes transformation-related effects and specific revenue items, more than doubled versus 2020 to €4.8 billion. Post-tax return on average shareholders’ equity was 3.4%, up from 0.2% in 2020. Post-tax return on average tangible shareholders’ equity (RoTE)1 was 3.8%, versus 0.2% in the prior year.
In the fourth quarter, profit before tax was 82 million and net profit was € 315 million, up 67% year on year. The fourth quarter tax benefit reflected a positive deferred tax asset valuation adjustment of €274 million resulting from the strong performance of Deutsche Bank’s US operations.
Net revenues in the fourth quarter were €5.9 billion, up 8% year on year, while noninterest expenses rose 11% year on year. This increase partly reflected a 17% year on year rise in transformation-related effects1 to € 456 million.
Investment Bank net revenues rose 4% to €9.6 billion in 2021. Revenues in Fixed Income & Currencies (FIC) Sales & trading were essentially flat year on year, while revenues in Origination & Advisory rose 23%.
In the fourth quarter, Investment Bank net revenues were €1.9 billion, up 1% year on year. A 14% decline in FIC revenues versus a strong prior year quarter was offset by 29% growth in Origination & Advisory revenues, the eighth consecutive quarter of year-on-year revenue growth.
Adjusted profit before tax, which excludes these effects, was € 527 million, down 15% year on year.
On January 26, 2022, Deutsche Bank announced actions which would provide total capital distributions to shareholders of approximately €700 million. This represents the first step towards the bank’s previously announced commitment to return €5 billion of capital to shareholders over time.
The Management Board has decided to initiate a share repurchase program of € 300 million, to be completed in the first half of 2022, and intends to propose to the Annual General Meeting a cash dividend of € 0.20 per share for the financial year 2021.