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Deutsche Bank net income plunged to 229 million euros

Staff Writer |
Shares of Deutsche Bank were losing around 4 percent in the early morning trading in Germany after the banking giant reported Wednesday weak profit and revenues in its third quarter, with lower results in all divisions.

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Looking ahead, the company said it is on track to be profitable in 2018, for the first time since 2014.

Further, Deutsche Bank reaffirmed its targets to reduce the workforce to below 93,000 by the end of 2018 and well below 90,000 by the end of 2019. On a full-time equivalent basis, the number of employees was 94,717 at the end of the quarter, a net reduction of approximately 700 during the quarter.

Christian Sewing, chief executive officer, said, "With profit before tax of 506 million euros, this result is another milestone on our way to becoming a sustainably profitable bank. We have our costs under control and sufficient capital to grow."

For the third quarter, net income plunged to 229 million euros from last year's 649 million euros. Earnings per share fell to 0.10 euro from 0.30 euro a year ago.

Profit before tax was 506 million euros for the quarter, versus 933 million euros in the prior year.

Net revenues were 6.18 billion euros, down 9 percent from 6.78 billion euros last year. The decline was partly reflecting the non-recurrence of certain specific items in the prior year quarter, as well as lower volatility and reduced client volumes in the Corporate & Investment Bank or CIB in the latest quarter.

CIB net revenues fell 13 percent to 3 billion euros, with 5 percent drop in Global Transaction Banking revenues and 15 percent decline in Fixed Income Sales & Trading revenues. Equity Sales & Trading revenues declined 15 percent.

The Private & Commercial Bank or PCB net revenues were 2.5 billion euros, down 3 percent. Asset Management net revenues declined 10 percent.

In the quarter, assets under management rose by 2 billion euros to 694 billion euros, as market performance and exchange rate movements more than offset net outflows.

The provision for credit losses declined to 90 million euros from last year's 184 million euros.

The company said it has made further progress meeting near-term adjusted cost and headcount targets.


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