Bad news for Deutsche Bank. The German banking giant announces that it has closed the second quarter with a net loss of €3,15 billion. Red is higher than expected by the same institution at the beginning of July (2,8 billion), when the Board had announced a maxi restructuring plan for 18 redundancies.
This year's hole compares with the bank's $401 million net profit for the same period last year.
If they are excluded exceptional charges for 3,4 billion euro, between April and June of this year Deutsche Bank made profits of 231 million euros, a result, however, down by 43% on an annual basis.
The news triggered a rain of title sales, which in mid-morning in Frankfurt leaves about four percentage points on the field at 6.84 euros.
“We have already taken significant steps to execute our strategy and transform Deutsche Bank and this is also reflected in our results,” he commented. Christian Sewing, CEO of the Frankfurt group.
As for the other balance sheet items, again in the second quarter Deutsche Bank produced revenues of 6,2 billion euros, 6% less than in the same period of 2018. The decline in turnover is even more marked (-18%, to 2,9 billion) if we narrow our gaze to the Investment bank, which was once the leading division of the group, while today it is the sector in which most of the cuts envisaged by the restructuring plan are concentrated.
To return to profitability, Deutsche Bank calculates that it must operate a cost cutting by at least six billion euros. Last year the group had already cut 6 thousand jobs.
For 2019 the bank expects a drop in overall revenues and a loss-making balance sheet. The result follows a small profit in 2018, which itself came after three consecutive years in the red.
