Deutsche Bank returns to profit in Q3, beats expectations


A statue is seen next to the Deutsche Bank logo in Frankfurt, Germany.Kai Pfaffenbach | Reuters

LONDON – Deutsche Bank on Wednesday reported third quarter net profit of 182 million euros ($ 214 million) as Germany’s biggest lender appears to emerge from the coronavirus crisis.This exceeded expectations of a loss of 114 million euros and marked a marked improvement over the 77 million euros net loss attributable to shareholders in the previous quarter.

Provisions for bad debts amounted to 273 million euros, in addition to 761 million euros allocated in the second quarter and 506 million in the first.

Here are a few other highlights:

  • Total net sales amounted to € 5.9 billion, compared to € 5.3 billion in the third quarter of 2019.
  • The common equity Tier 1 capital ratio was 13.3%, up from 13.4% a year ago.
  • Total non-interest expenses were 5.2 billion euros in the third quarter, compared to 5.8 billion euros a year ago.

The bank recorded a net loss of 832 million euros for the same period last year, as a major restructuring plan continued to weigh on results.

Deutsche Bank has been engaged in mass restructuring since July 2019 with the aim of cutting costs and regaining long-term profitability.

“In the fifth quarter of our transformation, we not only demonstrated continued cost discipline, but also our ability to gain market share,” Christian Sewing, CEO of Deutsche Bank, said in a statement.

“Our more focused business model is paying off and we consider a substantial portion of our revenue growth to be sustainable. ”

Heading into Wednesday’s trading session, the bank’s share price has risen more than 15% year-to-date, after recovering from a sharp decline in the crash of the March coronavirus.


Please enter your comment!
Please enter your name here