Deutsche Bank Deutsche Bank reported a weaker-than-expected loss of EUR 3.15 billion for the second quarter of 2019
Analysts at Refinitiv estimated a net loss of 1.7 billion euros in the second quarter due to the large-scale program to restructure the bank announced earlier this month.
Here are some key highlights for the quarter:
- Net profit reached 6.2 billion euros against 6.59 billion euros a year ago. Previously
- Significant costs for a strategic transformation of 3.4 billion euros.
Earlier this month, Deutsche Bank announced it would leave its global capital market and cut 1
"We have already taken significant steps to implement our strategy for transforming Deutsche Bank," said Christian Scheiding, CEO of the bank in a statement.
"They are reflected in our results, and a significant portion of our restructuring costs are already being absorbed in the second quarter, with the exception of the transformation charges, the bank will be profitable, and in our more stable businesses, revenue is equal or rising."
Deutsche Bank also revealed that so far over 900 employees have been notified or advised that they will be terminated.
It was further clarified that the exclusion of Strategic Transformation Fees would have been 231 million euro versus 401 million euro for the same period.
The bank's shares have fallen by more than 30% in the past 12 months, affected by numerous scandals linked to historical failures to combat money laundering. Wall Street analysts raise questions about whether it is too radical and ambitious.
The Bank expects extensive reforms that include the creation of € 74 billion ($ 83.05 billion). "Poor Bank" will cost 7.4 billion euros by 2022. It was originally expected to report a net loss for the second quarter from EUR 2.8 billion. a more significant share "of transformation charges are now behind the bank, adding that feedback from institutional and corporate clients on restructuring decisions was" extremely positive. "
" The critical point we took was the market, whether they are investors, regulators, rating agencies and most important clients, you see the strategic decisions that we have taken as being right for the company, "he told CNBC Annet Weissbach in Frankfurt. the influence of persistent low interest rates on central banks, such as the European Central Bank (ECB), announcing its latest monetary policy decision Thursday. ECB President Mario Draghi is expected to pave the way for reducing interest rates on bank deposits or resuming quantitative easing (QE).
"If these conditions are maintained for an extended period of time and are not offset by accommodation, such as regulating the reserves held by banks with the Eurosystem central banks, this can have a significant impact on revenue compared to our current expectations, "Deutsche Bank's Revenue Report
" Actions to offset the impact of this rate, such as price changes or the introduction of fees, may not be enough to offset this impact. "