Latest news on the legal battle regarding the takeover of Postbank
In a significant development, Deutsche Bank has announced that it will release litigation provisions related to the Postbank shareholders' lawsuit in the first half of 2025. The settlements, which follow a court hearing held on April 26, 2024, in Frankfurt am Main, have had a positive impact on the bank's financial results, reducing nonoperating costs compared to the prior year.
The resolution of the Postbank shareholders' lawsuit, which was initiated over a higher offer price from a 2010 voluntary takeover offer, is expected to clear a significant overhang for Deutsche Bank. The bank's management estimates that the full provision, including cumulative interest, will amount to approximately 1.3 billion euros.
The impact of the full provision on the bank's Common Equity Tier 1 (CET1) ratio, on a pro forma basis as of March 31, 2024, is estimated to be approximately 20 basis points. However, the bank's management will continue its analysis of the legal arguments and the potential financial statement impact, given the complexity of the legal issues and the recent court's statements.
Despite the provision, Deutsche Bank expects minimal impact on its strategic plans and financial targets, generally. The bank's workforce remained stable year on year, reflecting balanced leavers and strategic hiring aligned with the bank’s operational efficiency program. Adjusted costs remained flat year on year and in line with guidance, supporting the bank’s ongoing business growth plans.
The settlement has significantly boosted Deutsche Bank's profitability. The bank reported a strong first half of 2025 profit before tax of €5.3 billion, more than doubling compared to the prior year. In Q2 2025 alone, profit before tax was €2.4 billion (a 34% increase year on year excluding the prior-year Postbank litigation impacts), and net profit was €1.7 billion. The noninterest expenses declined significantly (by 26% in Q2 year on year), largely thanks to the absence of the previous Postbank litigation costs.
The settlement has also improved Deutsche Bank's capital position. The Common Equity Tier 1 (CET1) capital ratio improved to 14.2% at the end of Q2 2025, up from 13.8% in Q1 2025. This increase was driven by strong organic capital generation through retained earnings more than offsetting dividend payments and coupon costs. The bank also maintains a capital buffer of about €10 billion over requirements.
In summary, the resolution of the Postbank shareholders' lawsuit through settlements and the related release of provisions has materially benefited Deutsche Bank's profitability and improved its capital position. This supports the bank's current strategic initiatives without adverse impact from the Postbank issue going forward.
The full provision related to the Postbank shareholders' lawsuit, which includes the estimated 1.3 billion euros and cumulative interest, will be instrumental in enhancing Deutsche Bank's business finances, potentially strengthening its overall financial standing. The settlement's positive impacts on the bank's profitability are evident from its strong Q2 2025 results showing a significant increase in profit before tax and a decline in noninterest expenses.
