Finance
Deutsche bank highlights private credit risks as portfolio grows
Published by Global Banking & Finance Review®
Posted on March 12, 2026
2 min readLast updated: March 12, 2026
Quick Summary
Deutsche Bank’s private credit portfolio rose ~6% in 2025 to nearly €26 billion, as the bank warned of risks from weakening underwriting and indirect exposure—mirroring broader systemic concerns about the expanding $2 trillion private credit market.
Deutsche Bank Highlights Private Credit Risks as Portfolio Grows 6%
Deutsche Bank's Private Credit Portfolio Growth and Associated Risks
Portfolio Expansion in 2025
FRANKFURT, March 12 (Reuters) - Deutsche Bank said on Thursday that its private credit portfolio grew around 6% to nearly 26 billion euros ($30.05 billion) in 2025 as it highlighted risks to the headline-grabbing sector.
Annual Report Disclosure
The disclosure, made in the bank's annual report, comes as investor worries mount for the $2 trillion industry over deteriorating credit quality.
Investor Concerns and Sector Risks
"Failures of a select number of sub-prime lenders in the U.S. increased investor focus on risks associated with private credit and raised wider concerns around underwriting standards and fraud risk," Deutsche Bank said.
Deutsche said it applies "conservative underwriting standards" to its portfolio, which rose from 24.5 billion euros in 2024.
Risk Exposure and Regulatory Oversight
Germany's largest lender said it was not exposed to significant risks but "the bank could face potential indirect credit risks through interconnected portfolios and counterparties".
Regulatory Concerns
Regulators have flagged concerns about banks' exposure to private credit in part because disclosures are scant.
Sector-Specific Risks
Private credit has been marred by concerns about deteriorating credit quality and exposure to the software sector - an industry seen as ripe for disruption by advances in artificial intelligence.
($1 = 0.8653 euros)
(Reporting by Tom Sims and Matthias InverardiEditing by Tomasz Janowski)
Key Takeaways
- •Private credit AUM hit ~$2.1 trillion in 2025, testing credit quality amid record inflows and rising defaults in some portfolios (privatemarketsinsights.com).
- •Deutsche Bank emphasized its conservative underwriting and low direct exposure, but acknowledged potential indirect risks via interconnected portfolios (investor-relations.db.com).
- •Regulators like BaFin and international bodies are increasingly scrutinizing bank links to opaque private credit structures amid contagion concerns (alternativecreditinvestor.com).
References
Frequently Asked Questions about Deutsche Bank highlights private credit risks as portfolio grows
1How much did Deutsche Bank's private credit portfolio grow?
Deutsche Bank's private credit portfolio grew around 6% to nearly 26 billion euros in 2025.
2What risks did Deutsche Bank highlight in its private credit portfolio?
The bank noted risks such as deteriorating credit quality, concerns over underwriting standards, and fraud risk.
3Why are investors concerned about the private credit market?
Investor concerns stem from failures among sub-prime lenders, lack of disclosure, and exposure to volatile sectors like software.
4What steps does Deutsche Bank take to manage private credit risks?
Deutsche Bank says it applies conservative underwriting standards and monitors potential indirect credit risks through interconnected portfolios.
5What role do regulators play in the private credit sector?
Regulators have flagged concerns about bank exposure to private credit, particularly due to scant disclosures.