Germany’s largest bank has said all of its core businesses performed at or ahead of its plan last year, with net profit rising to the highest since 2011.

Deutsche Bank’s yearly net profits increased by more than fourfold to € 2.5 billion (£2.08 billion), while pre-tax profits tripled to € 3.4 billion (£2.8 billion).

“In 2021, we increased our net profit fourfold and delivered our best result in ten years while putting almost all of our expected transformation costs behind us,” said Christian Sewing, chief executive, Deutsche Bank. “All four core businesses performed at or ahead of our plan, and our reduction of legacy assets progressed faster than expected.

“We are delighted to be resuming capital distributions to our shareholders as we promised in the summer of 2019. Our transformation progress and financial performance in 2021 provide a strong step-off point to achieve our target of a return on tangible equity of 8 per cent in 2022.”

Although the bank’s investment arm performed well in the yearly results – up 17 per cent to € 3.7 billion (£3.07 billion) – numbers for the final quarter of 2021 were less promising.

Profit before tax in the fourth quarter was down 47 per cent to € 319 million (£265 million.) The bank said that this was driven by “significantly higher noninterest expenses” as well as increased credit loss provisions, with revenues broadly flat.

According to the Financial Times, Sewing also said that he was concerned about a “war for talent” in the investment bank sector.

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