Company: ADZCF
Filing Date: 2025-03-13
Form Type: 20-F
Source: 0001159508-25-000020
Chunk: 193

Company: DEUTSCHE BANK AKTIENGESELLSCHAFT
Filing Date: 2025-03-13
Form: 20-F
Chunk 193
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 net interest income in key segments of the banking book remained resilient, reflecting higher deposit volumes and loan margin expansion. Compound annual revenue growth since 2021 was 7.2% through the end of 2024, well above the bank’s target range of 5.5% to 6.5% for the period from 2021 to 2025. Provision for credit losses was € 1.8 billion in 2024, or 38 basis points of average loans, in line with the guidance the bank provided after the third quarter of 2024, reflecting specific headwinds including cyclical events in the Commercial Real Estate sector, certain larger corporate credit events and temporary effects following the Postbank integration. In 2023, provision for credit losses was € 1.5 billion, or 31 basis points of average loans. Noninterest expenses were € 23.0 billion in 2024, up 6% year on year. This development was primarily driven by an increase in nonoperating costs to € 2.6 billion, up from € 1.1 billion in 2023, relating to litigation as well as restructuring and severance charges. Adjusted costs were € 20.4 billion, down 1% compared to the prior year. Higher compensation and benefit expenses were largely offset by lower technology and professional services costs during the year. In 2025, the bank expects to reduce noninterest expenses. Nonoperating costs in 2025 are expected to decrease as litigation as well as restructuring and severance charges are expected to normalize, while adjusted costs are expected to remain essentially flat compared to 2024, creating significant operating leverage. The bank is on track to achieve its target of € 2.5 billion euros in cost savings from its operational efficiency program, which offset additional investments to support further business growth and increased returns to shareholders beyond 2025. Reflecting both operational efficiencies and additional investments, the bank now targets a cost/income ratio of below 65% in 2025, slightly above its original target of below 62.5%. Income tax expense was € 2.2 billion in 2024, compared to an income tax expense of € 1.5 billion in the prior year. The effective tax rate in 2024 of 33% reflected the above-mentioned costs relating to litigation charges and the non-occurrence of € 1.0 billion DTA valuation adjustments, which positively impacted 2023. Common Equity Tier