Deutsche Bank bonuses rise to decade high on trading, deals

[BERLIN] Deutsche Bank increased its bonus pool to the largest amount in a decade, after a surge in deals and trading last year drove results.

Germany’s largest lender awarded 2.5 billion euros (S$3.62 billion) in variable compensation to staff for their work in 2024, it said in its annual report published on Thursday (Mar 13). That’s a 26 per cent increase on the amount granted a year earlier. 

The pool was also affected by a new remuneration system which allows for a larger number of staff to receive bonuses, the bank said.

Last year, Deutsche Bank benefited from strong fixed-income securities and currencies trading, as well as the benefits of investment in the deals advisory unit. Revenue, however, declined in the corporate and private bank.

The Frankfurt-based lender said Thursday that revenue at its investment banking unit should be higher in 2025. The consensus of estimates compiled by Bloomberg predicts a 7 per cent increase in revenue for the unit, to 11.3 billion euros. 

Since taking the helm in 2018, chief executive Christian Sewing has been trying to balance the lender’s activities more evenly between its four main units investment banking, corporate banking, retail banking and asset management to reduce the dependency on volatile trading earnings. 

Overall, the number of high earners with a total pay of more than 1 million euros each rose to 647 from 505, mainly due to strong performance in the investment bank. Four Deutsche Bank employees earned more than 10 million euros each, one of these even as much as 18 million euros.

The bonus pool for the investment bank unit gained 32 per cent for 2024, the bank said. 

Sewing was given 9.8 million euros in total pay for 2024, compared with 8.7 million euros he received a year earlier. A change in the remuneration system means that the long-term part of his 2024 bonus is currently on a pro forma basis and the final amount will only be decided after 2026. BLOOMBERG