Deutsche Bank earnings stabilize in Q2

Source: Xinhua| 2018-07-25 21:30:54|Editor: Yamei
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BERLIN, July 25 (Xinhua) -- Revenue and profits at Deutsche Bank stabilized in the second quarter (Q2) of 2018, detailed earnings figures published on Wednesday by Germany's largest financial institute confirmed.

The Frankfurt-based bank achieved pre-tax profits of 700 million euros (819 million U.S. dollars) and a net quarterly result of 401 million euros between April and June.

Although net profits were still down by 14 percent compared to 2017, most analysts initially expected the embattled lender to record an even lower figure in the area of 159 million euros in Q2.

Thanks to the stronger than expected earnings performance, Deutsche Bank's core capital ratio rose to a relatively comfortable level of 13.6 percent.

"We have accelerated the restructuring of our bank substantially in the second quarter," a statement by chief executive officer (CEO) Christian Sewing read.

Sewing further announced on Wednesday that the fusion of Deutsche Bank's private- and corporate banking units with the subsidiary Postbank was finalized on schedule in May. He added that restructuring efforts at the investment banking division were progressing as well.

Commenting on now largely-confirmed preliminary earnings figures earlier, Sewing had described the quarterly reversal of fortunes as "evidence for the stability of the business model."

The better-than-expected earnings performance was also welcomed by investors as a glimmer of hope after several setbacks suffered by Deutsche Bank so far this year. The share price of the DAX-listed company rose slightly from a record low of 8.755 euros in June to 10.50 euros in Wednesday trading.

Deutsche Bank's annual profits have been deep in the red for the past three consecutive years. Cumulative losses since 2015 currently stand at 9 billion euros.

The bank intends to place a greater emphasis on its European home market in the future, reducing its investment- and retail banking presence in the U.S. in particular.