Deutsche Bank announced on Thursday that it recorded its greatest annual profit since 2007 thanks to increased interest rates and a massive cost-cutting initiative.
The bank achieved a net profit of 5,03 billion euros ($5.5 billion) in 2022, up from 1,9 billion euros the previous year.
Deutsche stated that the outstanding performance includes a one-time tax advantage of €1.4 billion.
“We have successfully transformed Deutsche Bank over the past three and a half years,” said CEO Christian Sewing in a statement.
The largest German bank embarked on a strategy overhaul in 2019, which includes the elimination of thousands of jobs and a greater concentration on Europe.
In 2020, after years of deficits, Deutsche returned to profitability.
The full-year revenue for 2022 increased by seven percent, reaching 27,2 billion euros.
The increase was attributable in part to the European Central Bank’s rate hikes to battle inflation, which ended years of ultra-low rates that had stifled eurozone banks’ earnings.
In 2022, Norway’s national wealth fund will lose $164 billion.
Deutsche’s earnings were also boosted by revenue growth in its investment banking and corporate banking divisions, which are among the company’s most important business segments.
An uncertain economic picture, fueled by the conflict in Ukraine and fears of a recession in Europe, prompted Deutsche to set aside 1.2 billion euros in loss provisions, compared to 515 million euros in 2021.
On March 2, Deutsche will provide an update on the bank’s strategy and forecast.
»Deutsche Bank achieves its highest annual profit in the past 15 years«