Communication from Christian Sewing Regarding Q2 Results of 2025, Delivered to All Staff via Our Platform
In the first half of the year, a leading European bank reported impressive financial results, with all four of its business units - Corporate Bank, Investment Bank, Private Bank, and Asset Management - experiencing double-digit profit growth. The bank's pre-tax profit more than doubled to 5.3 billion euros, and its return on tangible equity (RoTE) stood at around 10 percent or more.
The bank's revenues and cost ambitions are on track for the year, with an increase of 6 percent year on year to 16.3 billion euros. Notably, the bank achieved an RoTE of 11 percent after six months, surpassing its annual target.
The bank's success is attributed to the dedication, focus, and discipline of its employees, who have demonstrated stability, reliability, and a determination to move forward together with clients. The bank appreciates their extraordinary commitment and cites these qualities as key factors that make the bank stand out.
Despite the challenging economic environment, with discussions about tariffs and global trade relations, and the tense geopolitical situation, as shown by the escalation in the Middle East conflict, the bank remains optimistic for the months ahead.
Looking beyond 2025, the bank is working on its strategy, aiming to become more focused, efficient, and powerful. The future goals include becoming the fastest-growing, highest-return regional bank in the Southeast, capitalizing on markets growing 170 percent faster than the national average. The bank also aims to maintain its position as an employer of choice, with industry-leading customer service and deep local community roots.
The bank is committed to adapting proactively to ongoing fintech disruption and evolving regional banking landscape to remain competitive and innovative. The strategic focus after 2025 is sustained regional expansion, enhanced profitability, strong operational governance, and resilience against market and technological changes, positioning the bank for long-term success in its chosen growth markets.
The bank's bank-wide target for Return on Tangible Equity (RoTE) for the 2025 financial year is above 10 percent. The bank's CET 1 capital ratio currently stands at 14.2 percent.
The bank is also exploring opportunities provided by innovative technologies such as artificial intelligence. By leveraging its strong position in its home market, the bank aims to build bridges for companies and investors, further strengthening cooperation across all areas and creating an environment guided by responsibility, team spirit, and initiative-taking.
The bank's asset management unit was a significant contributor to the bank's impressive financial results, with double-digit profit growth, reflecting the bank's strong performance in finance-related business. Maintaining its focus on becoming a stronger and more efficient regional player, the bank aims to achieve an RoTE of over 10 percent in the 2025 financial year, with its current CET 1 capital ratio already standing at 14.2 percent.
