Deutsche Bank income plummets
July 27, 2016
Germany's largest lender on Wednesday reported a second-quarter bottom-line profit of 20 million euros ($22 million).
Net income thus dropped by a staggering 98 percent year-on-year, but the quarterly result was a lot better than expected by market pundits polled by Reuters, who had penciled in a net loss of 100 million euros for the second quarter.
Deutsche Bank's revenues were down 20 percent to 7.4 billion euros for the period under review.
Cleaning up its act
The German lender has been in a restructuring process for quite a while to recover from its involvement in various financial scandals of the past and focus more on its core business.
Deutsche Bank saw a particularly hefty drop in earnings in its securities trading business, falling way behind its major US rivals.
Co-Chief Executive John Cryan, who was appointed in July 2015, has overseen the bank's effort to meet its capital requirements. He said Wednesday the ongoing restructuring process had had a huge impact on quarterly results.
He defended the measures taken so far, adding that should the volatile economic environment of today continue for many more months, the pace of restructuring and its intensity would even have to be accelerated.
hg/jd (Reuters, dpa)