Deutsche Bank announced its financial numbers for Q4 and full-year 2020 today. The bank reported a net profit of €189 million in Q4 of 2020. The profit before tax for 2020 stood at €1 billion with a net profit of €624 million.
According to the official announcement, Deutsche Bank’s Fixed Income and Currency (FIC) sales and trading revenues jumped by 17% to €1.4 billion. The bank reported the fifth consecutive quarter of year-on-year revenue growth in the FIC.
“Revenues in Credit Trading were significantly higher, driven by strong client engagement and supportive market conditions. Emerging Markets revenues were higher year-on-year across all regions, driven by continued improvements to the Macro Flow business. Growth in Foreign Exchange revenues was driven by elevated volatility and strength in derivatives. Rates revenues were essentially flat ex-specific items, while the Financing business showed resilience with revenues essentially unchanged year-on-year excluding currency translation impacts,” the bank mentioned in the official announcement.
Deutsche Bank reported substantial growth in core bank profitability along with consistent revenue growth compared to the previous year.
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Cost Reduction and Transformation
The noninterest expenses reached €21.1 billion in 2020, a 15% drop. For the Q4 of 2020, expenses were down 21% to €5 billion. Deutsche Bank termed 2020 as the most important year for the bank as far as transformation is concerned. According to the announcement, 85% of transformation effects anticipated through 2022 were fully recognized.
“In the most important year of our transformation, we were able to more than offset transformation-related effects and elevated credit provisions despite the global pandemic. With profit before tax of a billion euros, we’re ahead of our own expectations. We have built firm foundations for sustainable profitability, and are confident that this overall positive trend will continue in 2021, despite these challenging times,” Christian Sewing, Chief Executive Officer at Deutsche Bank mentioned in the official announcement.
Furthermore, the bank reported significant growth in sustainable financing and investment with more than €40 billion volumes.