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Deutsche Bank defies virus, posts surprise profit

Agence France-Presse, Agence France-Presse
Deutsche Bank defies virus, posts surprise profit

(FILES) In this file photo taken on February 02, 2018 The logo of German company Deutsche Bank is pictured at it's headquarter in Frankfurt, Germany, on February 2, 2018. - German prosecutors raided several Deutsche Bank offices in the Frankfurt area on November 29, 2018 over suspicions of money laundering based on revelations from the 2016 "Panama Papers" data leak. (Photo by Daniel ROLAND / AFP)

Deutsche Bank, Germany's largest lender, posts a net profit of 182 million euros ($214 million) in the 3rd quarter of 2020

Deutsche Bank on Wednesday, October 28, swung to a surprise net profit in the 3rd quarter as it shook off losses driven by the coronavirus pandemic and ploughed on with a wide-ranging restructuring. 

Germany’s largest lender posted a net profit of 182 million euros ($214 million), compared with a loss of 942 million euros in the same period of the previous year. 

The results beat expectations for a loss of 82 million euros, based on a survey by FactSet, as Deutsche Bank started to move on from years of poor management and overblown investment banking ambitions with a transformation plan that launched last year. 

“Our more focused business model is paying off,” the bank’s chief executive Christian Sewing said.

“We not only demonstrated continued cost discipline, but also our ability to gain market share,” Sewing added.

Last year, the bank said it would cut 18,000 jobs, and figures released on Wednesday show that it has already shed around 3,000 positions. 

Deutsche said in September that it would shutter around 100 branches, cutting its high-street presence by a fifth, “reflecting changes in customer behavior patterns.”

For the 9 months to September, net profit was 62 million euros, compared with a net loss of 4.1 billion euros at the same point in 2019, when early provisions for its restructuring hit the business. 

Deutsche Bank kept its 2020 outlook, as it lowered its provision for loan losses compared with the lockdown-hit 2nd quarter. 

The Frankfurt-based institution set aside 273 million euros, 56% more than last year, but significantly less than 761 million euros in the 3 months to June when pandemic-induced restrictions closed businesses and factories

The group’s 3rd quarter results were once again driven by investment banking, which brought in 2.4 billion euros, up 43% year-on-year. – Rappler.com

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