The Dekabank has lowered its profit target for this year to 700 million euros, a significant reduction from last year’s goal. The bank nearly missed its target last year, achieving a profit of 971.5 million euros, just short of its billion-euro goal.
In a statement released on August 27 in Frankfurt, the Dekabank attributed the cautious outlook to ongoing geopolitical tensions and challenging economic conditions. After the first six months of 2024, the bank has achieved more than two-thirds of its annual target, reaching an economic result of 512.4 million euros. However, this figure represents a 19 percent decrease compared to the previous year.
The decline is primarily due to valuation effects. Despite this, the Dekabank has seen growth in the distribution of funds and certificates. The total distribution performance increased to 14.5 billion euros, compared to a decrease in the previous year. The bank had lost a major mandate worth 19 billion euros last year. According to CEO Georg Stocker, the development in fund sales remains positive, with an increase of 1.2 billion euros to a total of 4.6 billion euros. However, the certificates business, which is heavily dominated by private clients, has experienced a significant decline.
