Deutsche Bank posted its first full-year net profit since 2014 on Friday, despite a weak fourth quarter, amid growing merger speculation and a series of uphill struggles. The profit number of 341 million euros ($390 million) for 2018 failed to beat market consensus, with a Reuters poll of analysts predicting a figure of 461 million euros. For the fourth-quarter alone, the bank posted as loss of 409 million euros, which also failed to match estimates. "Our return to profitability shows that Deutsche Bank is on the right track. Now, our priority is to take the next step. In 2019 we aim not only to save costs but also to make focused investments in growth. We aim to grow profitability substantially through the current year and beyond," CEO Christian Sewing said in statement. Net revenues came in at 25 billion euros for the year and 5.5 billion for the last quarter of 2018, which both narrowly missed estimates in a Reuters poll. Its common equity tier-1 ratio, which indicates a bank's strength, dropped to 13.6 percent in 2018, versus 14 percent at the end of 2017. Shares fell 2 percent shortly after markets opened in Europe on Friday. The German lender has been under immense scrutiny by investors given its prolonged and ongoing troubles. It has been plagued by fines and several failed restructuring attempts. More recently, its headquarters were raided by prosecutors amid a money-laundering investigation.

'Challenging' fourth quarter

James von Moltke, the chief financial officer of Deutsche Bank, told CNBC's Annette Weisbach that the last quarter was "challenging." "Obviously the market backdrop was very challenging, and we also went through some idiosyncratic, if you like, headlines. In light of that backdrop we are pleased with our performance," he said. Annual net revenues at the investment banking division fell 8 percent year-on-year, with asset management also falling 14 percent from a year ago. Deutsche Bank said that its asset management arm faced "difficult" market conditions with assets under management dropping 5 percent in the fourth quarter. "We have been working to stabilize and grow revenues after having executed on the restructuring and reshaping of the business that we did in 2018. The fourth quarter, with the environment that we faced, didn't turn out to be quarter for that turnaround but it is something we continue to work for, look for in 2019."

Merger speculation