Deutsche Bank on Thursday posted a bigger-than-expected drop in fourth quarter and 2024 full-year profit as legal provisions and restructuring costs eroded revenue gains at its global investment banking division.

Deutsche Bank delivered bad news on spending, and investors weren’t happy. Deutsche Bank on Thursday said it’s now targeting a cost-to-income ratio of below 65% this year, versus a previous target of below 62.5%, after a cost-to-income ratio of 76% in 2024.

The lender’s better-than-expected performance in investment banking was overshadowed by a drop in profit and shares slumped as the company said it expects costs to remain heavy.

Deutsche Bank AG’s fixed-income traders closed out last year with the best fourth quarter on record as they benefited from volatility tied to the US elections in November and turbulence in European politics.

Germany’s largest lender by total assets will buy back shares and reported a worse-than-expected drop in profit due to well-flagged higher costs.

Germany’s largest lender Deutsche Bank on Thursday reported weaker-than-expected profit that fell sharply on the quarter in the last three months of 2024. Net profit attributable to shareholders hit 106 million euros ($110.