Announcement from Christian Sewing Regarding Q2 Results of 2025
Leading Bank Embraces Future with AI and Strategic Shifts
A renowned global bank has reported impressive financial results for the first half of the year, with revenues reaching €16.3 billion, marking a 6% year-on-year increase. Pre-tax profit more than doubled to €5.3 billion, and if one-off effects from last year's Postbank proceedings are excluded, the pre-tax profit is still up by more than a third.
The bank's strategic focus beyond 2025 aligns with industry trends, as it invests heavily in artificial intelligence (AI), technology adoption, and alternative investments. The bank aims to become more focused, efficient, and powerful, and further strengthen cooperation across all areas.
In the realm of AI and technology, the bank is following the footsteps of leading institutions like Morgan Stanley, JP Morgan Chase, Capital One, and Bank of America. It is leveraging advanced technologies to improve efficiency, customer experience, and risk management.
The bank is also expanding its offerings towards private markets and alternative investments to diversify portfolios and meet client demand for returns better than traditional public markets. This long-term growth strategy reflects a shift beyond standard asset classes.
In the face of market and policy uncertainty, the bank is encouraging strategies that emphasize diversification, steady planning, and avoidance of reactive decisions to manage risks beyond 2025. The bank wants to create an environment guided by responsibility, team spirit, and initiative-taking.
The bank's commitment in the first half of the year was extraordinary, as demonstrated by the strong financial figures. All four divisions (Corporate Bank, Investment Bank, Private Bank, and Asset Management) of the bank reported double-digit profit growth for the first half of the year, with the bank's return on tangible equity (RoTE) for the period standing at 11%.
The bank's CET 1 capital ratio is 14.2%, and it is on track to achieve its annual RoTE target of above 10% for the 2025 financial year. Despite the challenging economic environment, marked by discussions about tariffs and global trade relations, the bank is experiencing growing interest in Germany and Europe among its clients due to global shifts.
In the geopolitical arena, tensions are evident, as shown by the escalation in the Middle East conflict. However, the bank aims to build bridges for companies and investors with its strong position in its home market. The bank has significantly reduced costs, and its revenues and cost ambitions are being met.
As the bank's current strategy ends in 2025, it is working on its strategy for the period beyond, with a focus on credit recovery, AI and technology adoption, alternative investments, long-term wealth planning amid volatility, and a commitment to responsibility, team spirit, and initiative-taking.
In line with its strategic focus beyond 2025, the bank is aiming to strengthen its asset management division by leveraging advancements in technology and finance. This approach will enable the bank to not only manage risks more effectively but also capitalize on opportunities in alternative investments and private markets, thus diversifying portfolios and meeting client demands.
The bank's commitment to artificial intelligence and technology adoption extends beyond improving efficiency and customer experience; it also focuses on strategic asset management, furthering its position as a leading institution in the financial sector.
