Deutsche Bank Targets Higher Profitability, Cost Savings Through 2028
By Adria Calatayud
Deutsche Bank said it is targeting higher profitability and additional cost savings, as it outlined its strategic plan for the 2025-2028 period.
The German lender is looking to deliver growth in revenue, profitability and returns to shareholders over the next three years, as its home market embarks on a spending binge to upgrade its infrastructure and accelerate a push to rearm.
The bank said Monday that it aims to deliver return on tangible equity--a closely watched profitability metric for banks--greater than 13% by 2028 and gross cost savings of about 2 billion euros ($2.32 billion). It also targets a cost-to-income ratio--a gauge of a bank's efficiency, as measured by how much operating costs represent as a percentage of operating income--below 60% and annual revenue growth above 5% over the period to reach 37 billion euros ($43 billion) in 2028.
Under its previous plan, Deutsche Bank targeted a return on tangible equity of more than 10% and a cost-to-income ratio below 65% and revenue of 32 billion euros in 2025.
The bank said it would raise its payout ratio to 60% of net profit from 2026 onward, up from a current target of 50%.
Write to Adria Calatayud at adria.calatayud@wsj.com
(END) Dow Jones Newswires
November 17, 2025 08:51 ET (13:51 GMT)
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