Deutsche Bank: stock snubbed, despite returning to profit
(CercleFinance.com) - On Wednesday Deutsche Bank, Germany's largest bank, that it returned to profit in Q3, thanks to the strength of its investment banking activities.
Over the quarter, net profit came in at 309 million euros, against a loss of 832 million euros a year ago. The consensus expected a loss of around 70 million euros.
In a statement, the German bank explained that it benefited from the good health of its investment banking division, which saw its revenues rise by 43% to 2.4 billion euros, in particular with a 47% jump in its Fixed Income & Currencies businesses.
The German bank, which is in the midst of a transformation phase, also reported that it benefited from lower expenses, with its adjusted costs excluding transformation charges falling by 10%.
In this respect, the group says it is "well on track" to achieve all the financial and strategic targets set when it presented its transformation program.
Despite these encouraging figures, which investors seemed to overlook, the share is down over 3% on Wednesday morning on the Frankfurt Stock Exchange, even though the market is bearish due to the prospect of another lockdown in Germany.
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