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Monday, January 18, 2021

Deutsche Bank reports second quarter profit despite loan losses

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Deutsche Bank has reported a small net profit of 61 million euro (£55.1 million) in the second quarter as cost-cutting and revenue growth outweighed increased loan losses due to the virus outbreak. The gain compared with a loss of 3.1 billion euro (£2.8 billion) in the year-earlier quarter, when the bank had large expenses related to its ongoing restructuring.

£55.1 million Deutsche Bank’s second quarter net profit

The bank based in Frankfurt, Germany, said it had cut its cost base by 10% to 4.8 billion euro (£4.34 billion) as it presses ahead with a drawn-out transformation aimed at improving profitability by reducing costs and riskier investments and activities.

The bank said that set-asides for loans that are not being repaid rose to 761 million euro (£688 million) in the quarter, from 161 million euro (£145 million) in the same quarter a year ago. Revenues rose 1% to 6.29 billion euro (£5.69 billion).

Chief financial officer James von Moltke said that the bank is “fully on track” with a restructuring that is shedding employees and reducing costs.

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