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Deutsche Bank wins 481 million until June, 53% less

The largest German bank suffers from the fall in revenue and the costs of RE

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Deutsche Bank wins 481 million until June, 53% less

Deutsche Bank, Germany's largest bank, obtained a net attributable profit of 481 million euros in first half of 2018, representing a decline of 52.7% compared to result of entity in same period last year as a result of Imp Restructuring costs Act.

A few days ago, with progress of some results, analysts improved expectations about German giant, but today disappointments have come. Within two hours of publishing results, Deutsche Bank's shares fell by almost 2%, thus dragging a depreciation of 35% so far this year. Its stock market value is 21.2 billion euros, compared to 74 billion of Santander, largest entity in eurozone.

In recent months, German giant has been in spotlight of different rumors that placed him as target of a possible takeover of JPMorgan or even largest bank of China, ICBC. Or comments on markets spoke of a possible merger with Commerzbank.

Last April bank's supervisory board decided to dispense with CEO, John Cryan, after three years. The Council announced that it ceased English banker two years before end of its contract. His replacement was Christian sewing, a 47-year-old executive who has made his entire career at Deutsche Bank.

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Returning to results, fact is that turnover of Deutsche Bank between January and June reached 13,567,000,000, 2.8% below revenue for first half of 2017, including a growth of 3.3% of net income per Interest rates, up to 6.342 billion, while commission revenues fell by 7.2%, up to 5.359 billion, reports Europa Press.

In second quarter, German bank obtained a net attributable profit of 361 million euros, 19.2% less than a year earlier, while its turnover decreased by 0.3%, up to 6.59 billion euros.

Cost reduction

"In second quarter we significantly accelerated our bank's remodeling and demonstrated resilience of our global business," said Christian Sewing, CEO of Deutsche Bank, highlighting "important changes" in activity of The entity.

"We are going in right direction as to costs and quality of our balance is excellent. This gives us flexibility to invest in areas where we have strong points, "he added.

Given progress in implementation of its strategy, German entity has confirmed its objective to reduce its costs by 2018 to 23 billion euros, noting that in second quarter of year has reduced its workforce by some 1,700 troops and about 2,100 in That goes from 2018, to a total of 95,429 full-time employees, smallest number since acquisition of Postbank in 2010.

Thus, bank's direction believes that entity is on track to reduce its workforce below 93,000 effective at end of 2018 and "far below" 90,000 at end of 2019.

On or hand, Deutsche Bank indicated that its basic capital ratio CET1 rose to 13.7% from 13.4%, while leverage ratio stood at 4%, compared to previous 3.7%.

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  • Deutsche Bank dismisses CEO John Cryan and appoints Christian sewing as new CEO

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