Deutsche Bank reported third quarter 2016 pre-tax profit of EUR 619 million and net income of EUR 278 million.
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Deutsche Bank Q3 revenues were slightly up, EUR 7.5 billion vs. EUR 7.3 billion in 3Q2015, despite a tough interest rate environment.
Pre-tax profit was EUR 619 million in 3Q2016, achieved despite cost burden of restructuring and severance, litigation, impairments and de-risking of Non-Core Operations Unit (NCOU) of EUR 1.0 billion.
Pre-tax profit was EUR 1.6 billion in 9M2016, achieved despite cost burden of restructuring and severance, litigation, impairments and de-risking of NCOU of EUR 3.0 billion.
Group net revenues in the third quarter 2016 increased 2% to EUR 7.5 billion.
Revenues in the Private, Wealth and Commercial Clients segment benefitted from the absence of a charge related to Hua Xia Bank Co. Ltd. taken in the prior year quarter, and Asset Management revenues included strong positive mark-to-market movements on policyholder positions in Abbey Life.
The revenue increase is driven primarily by 10% year-over-year growth in Global Markets, while absent the aforementioned effects, revenues declined in all other operating businesses, largely reflecting impact of the ongoing low interest rate environment.
Provisions for credit losses increased 58% in the third quarter 2016 to EUR 327 million. This mainly resulted from higher provisions in CIB reflecting continued market weakness in the Shipping and Oil & Gas sectors.
Noninterest expenses were EUR 6.5 billion in the third quarter 2016, a 50% decrease from the prior year period. The third quarter 2015 included a charge for impairment of goodwill and other intangible assets of EUR 5.8 billion.
Litigation expenses and performance-related compensation were lower than the prior year, which was partially offset by higher IT costs.
Third quarter 2016 net income was EUR 278 million compared to a loss of EUR 6.0 billion in the prior period, which included the previously noted charge related to Hua Xia Bank Co. Ltd. and impairments of EUR 5.8 billion. ■