2018 is the year of the return to profit for Deutsche Bank that after four years of losses manages to achieve the long-awaited goal. The celebrations, however, do not last long, as investors focus on the disappointing results of the fourth quarter and the title reverses course on the Frankfurt Stock Exchange. At 11, Deutsche Bank shares dropped 1,8% to 7,6 euros.
As for the accounts, in the year the German bank takes home a profit of 341 million, after the net loss of 735 million euros recorded in 2017, a result achieved thanks to strong cost containment measures and lower tax and litigation charges.
Gross profit amounted to 1,3 billion euros (+9% compared to 2017), while i revenues annual decrease by 4% to 25,3 billion. Common Equity Tier 1 is 13,6%, higher than the 13% indicated as a target by the bank.
"Our return to profitability demonstrates that Deutsche Bank is on the right track," said the CEO Christian Sewing, is he took the helm of the institute last April by launching a major restructuring plan which provides for the cutting of over 7000 jobs.
As mentioned, the results of the fourth quarter however, the enthusiasm is extinguished. In fact, the last three months of 2018 closed with a net loss of 409 million euros, a red that far exceeds the expectations of analysts who expected a loss of 268 million.
In the fourth quarter, revenues fell by 2% to 5,6 billion, but what is most striking is the figure relating to revenues from bond trading which recorded a drop of 23%, while the investment bank's overall proceeds fell by 5 % in the fourth quarter.
“In 2019 we aim not only to save costs, but also to invest in growth in a targeted manner. We aim to grow profitability substantially this year and beyond,” the CEO said, announcing that the adjusted cost target for the current year is set at $21,8 billion from $22 billion previously indicated. , the workforce will fall below 90 thousand units, while the Rote (Return on Tangible Equity) target will be higher.
The German bank finally announced that the management board intends to propose to the supervisory board a dividend of 11 cents per share over 2018.
