Restructuring plunges Deutsche Bank into red in Q2

People walk past a Deutsche Bank office in London, Britain July 8, 2019. — Reuters pic
People walk past a Deutsche Bank office in London, Britain July 8, 2019. — Reuters pic

FRANKFURT, July 24 — Germany’s biggest lender Deutsche Bank today reported a net loss of €3.2 billion (RM14.6 billion) in the second quarter, as the troubled financial giant lurched into its latest restructuring.

“We have already taken significant steps to implement our strategy to transform Deutsche Bank. These are reflected in our results,” chief executive Christian Sewing said in a statement.

Earlier this month, Deutsche said it would slash 18,000 jobs worldwide by 2022, retreat from most share trading activities and refocus on its German and European roots, after decades attempting to compete with Wall Street titans.

The moves also aim to slash annual costs by €6 billion.

Costs relating to the restructuring amounted to €3.4 billion in the second quarter, meaning the firm would have made €231 million net profit without the effect.

In 2018 — the year that marked Deutsche’s return to annual net profits after years of woes — the second quarter had brought a bottom line in the black to the tune of €361 million.

In April-June this year, revenues at Deutsche fell six per cent year-on-year, to €6.2 billion.

And the group made a pre-tax loss of 946 million euros, compared with a €1.7-billion profit in the same quarter of 2018.

But Deutsche underlined that its restructuring was already bringing lower costs, falling by four per cent.

Meanwhile talks are underway with French bank BNP Paribas to sell parts of its trading activities, and more than 900 staff have already been laid off. — AFP

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