Deutsche Bank Luxembourg reported net income of €240.4m for the 2025 financial year, down from €277.5m a , as the bank strengthened reserves against a more uncertain economic and geopolitical backdrop.
The decline, equivalent to 13.4%, came despite what DBL described as a solid underlying performance. Operating profit remained above €500m, while the bank net income after tax before the addition to its lump-sum provision exceeded €300m.
“2025 was a solid year for Deutsche Bank Luxembourg SA, we generated net income of €240.4m and maintained net interest income above €500m, while taking a prudent approach by strengthening our reserves,” , CEO of DBL, said. “This combination of profitability and discipline is precisely what our clients expect in a complex and demanding environment,” he added.
A wholly owned subsidiary of Deutsche Bank AG, Deutsche Bank Luxembourg operates across corporate banking, investment banking and private banking, and remains one of the group’s key entities in the Grand Duchy.
Interest income
Net interest income fell to €509m in 2025 from €582.5m in 2024, a decline of €73.5m. DBL attributed the fall to lower euro interest rates and weaker client lending volumes, partly offset by improved interest income from higher client deposits and lending to credit institutions.
Loans and advances to clients fell to €17.3bn at the end of 2025 from €19bn a year earlier, with the bank citing subdued credit demand linked to the uncertain global trade environment. Loans and advances to credit institutions rose to €16.9bn from €14.6bn.
The annual report stated that client lending still accounted for about 50% of total assets, while client deposits represented more than 20% of total liabilities. Client deposits rose to €4.7bn from €4.2bn, including deposits placed with the bank via credit institutions acting in a fiduciary capacity.
Reserves
DBL added €80m to its lump-sum provision in 2025, lifting the total to €484m from €404m. The bank said the increase reflected a prudent assessment of economic uncertainty and geopolitical developments, including the escalation of conflict in the Middle East.
Specific provisions for credit losses, net of releases and recoveries from credit protection instruments, declined by €14.6m year on year. Overall provisions for risks fell to €105m from €119.7m in 2024.
Operating profit, after other operating income and income from transferable securities, declined to €512.4m from €594m, while general administrative expenses rose to €200.3m from €193m, mainly due to higher IT costs. Other operating net income fell to €236.4m from €254.7m, largely because of lower compensation from Deutsche Bank Group entities linked to below-market interest rates on Strategic Corporate Lending activities.
Capital ratios
Total assets rose to €34.8bn at the end of 2025 from €34.4bn at the end of 2024, while capital ratios improved during the year. DBL’s Common Equity Tier 1 ratio rose to 12.1% from 10.3%, while the Tier 1 capital ratio increased to 13.3% from 11.4%. The total capital ratio rose to 15.5% from 13.3%, and the leverage ratio increased to 8.5% from 8%.
“Our capital position strengthened significantly in 2025, with a CET1 ratio of 12.1%, compared with 10.3% in 2024,” Zapf noted. “This robust capital base gives us the capacity to continue supporting our clients and developing our offering across all our main businesses. It provides a solid foundation for the ambitions we have set for the coming years,” he continued.
The liquidity coverage ratio was unchanged at 141%. DBL stated that all regulatory ratios remained above minimum requirements and internal targets. Risk-weighted assets fell to €40.5bn from €47.1bn, mainly due to the implementation of CRR3. The annual report stated that the new regulation reduced RWA by approximately €6bn, lifting regulatory capital ratios.
Dividend and headcount
DBL’s supervisory board proposed distributing €216.8m from 2025 net income and €23.4m from other reserves, taking the proposed dividend to €240.2m.
DBL employed 341 people at the end of 2025, compared with 324 employees a year earlier. The bank said it continued to invest in its platform and talent base, with permanent hiring accelerating to 49 new recruits in 2025 from 24 in 2024. Women represented 45% of the total workforce, unchanged from 2024, while the share of women among executives rose to 30% from 25%. The average length of service fell slightly to 11.1 years from 11.5 years.
“Luxembourg remains strategically key for Deutsche Bank: it is a solid and proven cross-border franchise, as well as an essential platform for serving our international clients across all our businesses,” Zapf remarked.
The bank has been present in the Grand Duchy since 1970 and has been based in Kirchberg since 1991. In 2026, it plans to move to the Skypark Business Center next to Findel Airport.
2026 growth plans
For 2026, the management board expects to grow the bank’s client offering across its core segments. In Corporate Bank, DBL plans to add cash management and fiduciary deposit solutions. In Private Bank, it expects to grow lending to ultra-high-net-worth and high-net-worth clients in Europe. In Investment Bank, it plans to expand its sub-participation business and add solutions to its fiduciary note programme.
DBL stated that revenues from its core business segments are expected to be slightly higher than in 2025, while net interest income in Corporate and Other is expected to remain under pressure from subdued euro interest rates. The bank also expects specific risk provisioning to rise in 2026 compared with 2025, before a slight normalisation towards historical levels from 2027 to 2029.