Deutsche Bank's stock price falls due to disclosure of private credit risk

LootboxPhobia · 2026-03-12T21:24:34+00:00

Deutsche Bank shares fell 5% on Thursday after its annual report revealed risks in its private credit investment portfolio. Despite expectations that the portfolio will grow to nearly €26 billion, the bank emphasized there are no material direct risks. However, market concerns about the private credit industry have intensified, particularly against the backdrop of deteriorating credit quality and the collapse of secondary loan market facilities.

LootboxPhobia

2026-03-12 21:24:34

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Investing.com – Deutsche Bank’s stock price fell 5% on Thursday after the bank disclosed risks related to its growing private credit investment portfolio in its annual report.

Germany’s largest bank said its private credit portfolio grew by approximately 6% in 2025, reaching nearly €26 billion ($30.05 billion), up from €24.5 billion in 2024. The bank highlighted the potential indirect credit risks from interconnected portfolios and counterparties but stated it does not face significant direct risk exposure.

Against the backdrop of deteriorating credit quality and increased risk exposure in the software sector, investor concerns about the $2 trillion private credit industry are intensifying, and this disclosure comes at a time of heightened scrutiny. Deutsche Bank noted that the failure of several U.S. subprime lenders has increased investor focus on risks associated with private credit and raised broader concerns about underwriting standards and fraud risks.

The bank stated that it employs conservative underwriting standards for its portfolio. This annual report disclosure coincides with increasing scrutiny of the private credit sector, which has attracted significant investor attention in recent years.

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