More bad news has come from Deutsche Bank, which has reported its biggest quarterly loss since the global financial crisis this Wednesday, as the German lender felt the weight of its recent restructuring.
In the second quarter of 2019, which ended on June 30 this year, Deutsche Bank recorded a net loss of €3.1 billion, after the firm’s recent restructuring which saw large job cuts, cost the company €3.4 billion, the statement said.
If the bank hadn’t received these charges, it states that net income would have been €231 million. Nonetheless, this is still lower than the €401 million net income achieved in the prior-year period.
Net revenues were €6.2 billion in the second quarter of 2019. When measuring this against the same quarter in the previous year, which noted net revenues of €6.6 billion, it is down by six percent.
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Can Deutsche Bank turn revenues around?
Deutsche Bank’s struggles have been widely reported. Consecutive poor financial performance, money laundering investigations, and at the start of the month, 18,000 job cuts in its investment bank worldwide.
Earlier this year in March, Deutsche Bank’s CEO, Christian Sewing, pledged to reverse declining revenue in 2019, as the bank believes it can achieve a “slight” increase in revenues in 2019, as Finance Magnates reported. However, so far this year, net revenues have fallen for both Q1 and Q2 in 2019 on a year-on-year comparison.
Taking a look at the sales and trading performance for the German lender’s fixed-income unit, revenues came in at €1.3 billion, which is lower by four percent year-on-year. The resilient performance in Credit was offset by lower volatility on foreign exchange (forex) revenues.
Commenting on the results, Christian Sewing said: “We have already taken significant steps to implement our strategy to transform Deutsche Bank. These are reflected in our results.
“A substantial part of our restructuring costs is already digested in the second quarter. Excluding transformation charges the bank would be profitable and in our more stable businesses revenues were flat or growing. This, combined with our solid capital and liquidity position, gives us a firm foundation for growth.”