Deutsche Bank: posts quarterly profit despite credit losses
(CercleFinance.com) - Deutsche Bank managed to swing to a profit in the second quarter, despite higher restructuring and severance costs and a rise in credit loss provisions, as the German lender continued to cut expenses.
Deutsche's second-quarter net profit reached 61 million euros, from a net loss of 3.1 billion euros in the second quarter of 2019, which included heavy transformation charges.
The company said earnings for the quarter included provisions for credit losses amounting to 761 million euros, in line with management expectations, primarily resulting from the impact of the Covid-19 pandemic.
Group revenues inched up 1% to 6.3 billion euros, despite the exit from the equities sales and trading business.
Deutsche Bank also re-affirmed its full-year 2020 target of 19.5 billion euros of adjusted costs ex-transformation charges, down from 21.5 billion euros in 2019.
The shares rose by 1.7% on the Frankfurt Stock Exchange following this report.
Copyright (c) 2020 CercleFinance.com. All rights reserved.