BERLIN, Oct. 24 (Xinhua) -- Deutsche Bank expressed confidence on Wednesday that a fall in profits recorded during the third quarter (Q3) of 2018 would not continue as corporate reforms begin to bear fruit.
According to earnings figures published by the DAX-listed company, its pre-tax profits were down at 506 million euros (577 million U.S. dollars) in Q3 from 933 million euros in Q3 2017. Net profits slumped from 649 million euros to 229 million euros during the same period. The development was attributed to an ongoing cost- and jobs cutting program at the Germany's largest financial institute.
"The pre-tax profit of 506 million euros is a further milestone on our path to a sustainably profitable bank. We have the costs under control and possess the capital to grow again," a statement by Deutsche Bank CEO Christian Sewing read. Sewing added that the Frankfurt-based lender was "on track" to record an overall annual profit in 2018 for the first time in four consecutive years of losses since 2014.
In the first nine months of 2018, Deutsche Bank has so far recorded total pre-tax and net profits of 1.6 billion euros (2.6 billion in 2017) and 750 million euros (1.7 billion euros in 2017) respectively. During the same period, gross revenue fell by five percent to 19.7 billion euros.
"We have started to feel a new discipline in our bank which is also reflected in numbers", Sewing said. Addressing his employees, the CEO warned, however, that there was much work left to do in spite of progress in the corporate restructuring process between July and September.
Deutsche Bank further reported that it had met targets set by management to eliminate around 1,450 positions in Q3 and 2,800 positions in the first nine months of the year. The company consequently had around 94,717 full-time staff at the end of the quarter and re-affirmed a goal to lower the number to below 93,000 by 2019 and well below 90,000 by 2020.