Deutsche Bank plans to expand its private credit offerings in Europe as it reports €25.9bn (£22.3bn) of exposure to the asset class.
In its 2025 annual report, the lender said it intends to accelerate private credit activity within its asset management division by partnering with its corporate bank and investment bank to support European transformation. It also intends to expand infrastructure investments in the continent.
The report showed Deutsche Bank’s private credit portfolio increased from €24.5bn in 2024 to €25.9bn in 2025.
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The bank said 73 per cent of its exposure is to multi-asset lender facilities, while the remainder spans single and multi-asset lender net asset value financing, single-asset financing, non-bank commercial real estate lending, business development companies and subscription finance.
Deutsche Bank also partly attributed higher fee revenues from private credit lending and financing to net commission and fee income reaching €10.9bn in 2025, an increase of €519m compared with 2024. The growth was mainly driven by higher performance and management fees as average assets under management rose.
The bank noted that lending to private credit firms, generally categorised as non-bank financial institution activity, is a key risk theme for Deutsche Bank, citing heightened scrutiny following recent default events in the market and its exposure to software companies.
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“Although Deutsche Bank is not exposed to significant risks related to NBFIs, the bank could face potential indirect credit risks through interconnected portfolios and counterparties,” the bank said in the report.
It said it applies conservative underwriting standards to its private credit exposures, including assessments of sponsor and investor quality as well as other structural features.
“Portfolios are managed under dedicated risk appetite frameworks with regular stress testing and active monitoring of credit performance, collateral values and underlying diversification,” the report added.
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