Deutsche Bank's agreement follows months of negotiations with the U.S.'s Department of Justice (DoJ) and ranks as the third-highest penalty imposed to date on a bank to settle claims of mis-sold mortgage-backed instruments.
Although the $7.2 billion payment is far from negligible, investors may take some cold comfort from the fact it is less than $16.7 billion that Bank of America was required to stump up in August 2014 and the $9.0 billion charged to JPMorgan Chase in November 2013.
Furthermore, of the full amount, only the $3.1 billion civil fine component is required to be imminently delivered in cash.
The full penalty measures approximately half of the $14.0 billion figure claimed by the DoJ in late September, which spooked traders into sending the German bank's share price to a record low of 10.55 euro ($11.02).
Since that nadir the stock has staged a bounceback to the tune of 68 percent to Thursday's close, although it still languishes over 20 percent below its price at the start of 2016.
According to Filippo Alloatti, senior credit analyst at Hermes Investment Management, this settlement is important as it has come in a low lower than the worst case scenario.
"For Deutsche Bank, it's a relief to be rid of such an overhang. Now back to executing and tweaking the strategy please," he told CNBC via email.
Gildas Surry, senior analyst at Axiom Alternative Investments, agreed that it draws a line under the worst of the issues - namely, significant uncertainty - that had plagued the bank's management. Although pointing out that the German lender still faced litigation relating to trades in Russia and the potential for a seasonal increase in restructuring charges within fourth quarter results, he said his team viewed the outcome as very positive for Deutsche Bank.
"It will give them the flexibility to continue paying coupons on their hybrids and the debt metrics will normalize promptly," he explained.