earnings reports

Huge risk provisions push Deutsche Bank into Q2 2020 net loss

Agence France-Presse, Agence France-Presse
Huge risk provisions push Deutsche Bank into Q2 2020 net loss

The logo of German company Deutsche Bank is pictured at the company's headquarters in Frankfurt am Main, western Germany, where the bank presented its annual financial statement on January 30, 2020. - Germany's biggest lender Deutsche Bank said that it lost 5.7 billion euros ($6.3 billion) in 2019, its fifth annual loss in a row and its second-worst ever result. (Photo by Daniel ROLAND / AFP)

Deutsche Bank more than quadruples its risk provisions due to the coronavirus pandemic

Deutsche Bank reported a net loss of 77 million euros ($90 million) for the 2nd quarter of 2020 on Wednesday, July 29, as the fallout from the coronavirus forces it to more than quadruple its risk provisions.

The net loss attributable to shareholders was partly down to the group setting aside 761 million euros to meet potential credit losses risks – more than 4 times more than during the same period last year.

Net income excluding non-controlling interests defied expectations, however – at 28 million euros, it surprised analysts who had predicted a net loss of 283 million euros.

There was also good news on pre-tax profit and net revenues, at 158 million and 6.3 billion euros respectively.

The group’s results in the 2nd quarter were once again driven by investment banking, which brought revenues of 2.7 billion euros, up 46% year-on-year.

“In a challenging environment we grew revenues and continued to reduce costs,” chief executive Christian Sewing was cited as saying in a press release.

Deutsche Bank reported a net loss of more than 3 billion euros in the 2nd quarter of 2019, partly driven by sweeping restructuring plans.

The bank said it was “fully on track” to meet these targets, which include cutting 18,000 jobs by 2022.

Announced in 2019, the restructuring also involves reducing Deutsche Bank’s focus on investment banking. – Rappler.com