Deutsche Bank CEO dismisses systemic risk in private credit

Christian Sewing, the Chief Executive Officer of Deutsche Bank AG, addressed concerns regarding the private credit sector during a financial conference in Germany on Tuesday. He indicated that while discussions and market attention surrounding the industry are likely to persist, he does not view the current situation as a threat to the broader financial system.

Sewing emphasized that the bank maintains rigorous standards for its private credit portfolio. He noted that the lender has not incurred any losses in this specific sector to date, attributing this stability to disciplined risk management and strict underwriting protocols.

"I dont think that private credit...is a systemic risk."

"But Im also not saying that the noise level will end quickly."

"It really depends on how your underwriting standards are."

"At the end of the day, it depends on the way you underwrite."

Regarding the bank's financial performance, Sewing provided a cautious outlook for the first quarter of 2026. He projected that overall revenue would likely remain flat compared to previous periods. Specifically, the investment banking division might see a slight decline in trading revenue, influenced in part by unfavorable currency exchange rates. These comments follow a recent disclosure by Deutsche Bank detailing its private credit exposure, as the bank continues to monitor risks within the high-profile sector.