CEO Christian Sewing's communication on Q1 results for the year 2025 to our entire workforce.
In the tumultuous first quarter of 2025, the global financial landscape was marred by significant market turbulence and uncertainty. A series of events, including tariff policies introduced by the Trump Administration and geopolitical instability, sent shockwaves through the global economy.
However, amidst the chaos, one institution emerged as a beacon of resilience - the Global Hausbank. Despite the challenging environment, the bank reported impressive financial results, with all four of its pillars (Private Bank, Asset Management, Investment Bank, and Corporate Bank) achieving higher pre-tax profits than in the same quarter last year.
The Private Bank and Asset Management, in particular, saw the highest gains, with a 43 percent and 67 percent increase in pre-tax profit, respectively. The bank's pre-tax profit increased by 39 percent to 2.8 billion euros, marking a significant milestone. Moreover, the bank's revenues for the first quarter of 2025 grew by 10 percent to 8.5 billion euros, the highest level in ten years.
The bank's return on tangible equity (RoTE) was 11.9 percent in the first quarter of 2025, a three percentage point increase from the previous year. This impressive figure is a testament to the bank's robust financial health and strategic decision-making.
The bank's strong performance can also be attributed to its prudent risk management. More than three-quarters of the bank's loans are in comparatively low-risk areas, providing a solid foundation for the institution. This conservative approach has been crucial in protecting clients and navigating the difficult period.
Clients have shown their faith in the bank, relying on it to provide stability and guidance during these turbulent times. The bank's commitment to supporting clients is evident in its efforts to review business processes and resource allocation, ensuring it can continue to serve its clients in the best possible way.
The bank's Management Board, led by Christian, expressed gratitude to the employees for their hard work during these intense times. The bank appreciates the dedication and resilience shown by its employees, which has been instrumental in the bank's success.
The bank's vision of becoming the European champion is becoming increasingly relevant. Its strong performance, coupled with its growing demand and European alternative status to US banks, positions the Global Hausbank as a formidable player in the European financial landscape.
The bank is also receiving positive feedback from clients for its support during market turbulence. Its ability to adapt flexibly to the volatile environment and work with discipline towards its goals has earned it praise.
The cost/income ratio improved to 61.2 percent, compared with 68.2 percent in the prior year quarter, further underscoring the bank's financial strength.
As the global economy continues to navigate the challenges of 2025, the Global Hausbank stands as a shining example of resilience and success. Its impressive first-quarter results, coupled with its commitment to clients and employees, position it well for the future.
[1] "Trump's Tariff Plan Could Hit US Economy Hard, Analysts Say," The New York Times, January 3, 2025. [2] "Trump's Tariffs: What You Need to Know," The Washington Post, January 3, 2025. [3] "Global Market Turmoil: What You Need to Know," The Guardian, April 5, 2025.
The Global Hausbank's impressive asset management, as evidenced by a 67 percent increase in pre-tax profit, plays a crucial role in its financial success amidst the global market turbulence in 2025. Furthermore, the bank's risk management strategy, with more than three-quarters of loans in low-risk areas, contributes significantly to its financial strength and resilience in the business sector.
