The German lender’s profit plunged 98% to €20m in the April-June quarter compared to the same quarter a year earlier.
Its revenue also fell 20% to €7.4bn, as market uncertainties primarily impacted revenues in the most market-sensitive businesses.
Deutsche Bank CEO John Cryan said: “While our results show that we are undergoing a sustained restructuring, we are satisfied with the progress we are making.
“We have continued to de-risk our balance sheet, to invest in our processes and to modernise our infrastructure. However, if the current weak economic environment persists, we will need to be yet more ambitious in the timing and intensity of our restructuring.”
While its revenues in transaction banking remained stable in the quarter, earnings from private, wealth & commercial clients witnessed a decline of 11%.
The lender’s provisions for bad loans went up by 72% to €259m, primarily reflecting higher provisions in the shipping and the metals and mining sectors.
Revenues from its global markets division were 28% lower at €2.4bn due to reflecting the implementation of restructuring strategy and macro-economic uncertainties which impacted client activity.
It’s corporate and investment banking division also saw a12% decline in revenue to €1.9bn amid challenging market conditions in corporate finance. Revenue from asset management services fell 8% to €706m year-on-year.
However, its Postbank recorded 13% increase in revenue to €903m compared to the prior year quarter.
In June, Deutsche Bank announced to cut 3,000 jobs and close 188 branches in the country, as part of its restructuring strategy outlined last year.
Image: Deutsche Bank in Beijing – China. Photo coutesy of Deutsche Bank.
