German corporate profits tumble 9.8% as investment‑banking fees slide

The 200 largest German companies recorded a 9.8% decline in net profit for 2025, with earnings falling by €11.7 billion to €107.1 billion. Revenue remained stable at €3.8 trillion, but profit gaps widened across sectors. Volkswagen’s profit halved to €6.9 billion despite steady sales, while the chemicals group Covestro posted a larger loss and the defence firm Rheinmetall saw a 30% sales surge.

In the financial side, Germany’s investment‑banking fee income dropped 3.4% year‑on‑year to $1.75 billion in the first half of 2026, the lowest level in two years, even as announced M&A volume reached a record $152 billion. Advisory fees for completed deals rose 5.9% to $407.4 million, and ECM underwriting fees jumped 91% to $174.5 million. JP Morgan emerged as the top fee‑earner in Germany with $187 million, overtaking Goldman Sachs, while Deutsche Bank and other banks saw declines.