Troubled German giant Deutsche Bank saw net profit tumble in the second quarter to 20 million euros ($22 million), down 98 percent on the previous year’s figure, results released on Wednesday showed.
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Net profit dropped to €20m in the second quarter, down from €798m in the year earlier period, but ahead of analysts’ consensus for a net loss of €105m.
Chief Executive John Cryan said in a statement that the bank is making progress in a multiyear turnaround, but warned that if weak market conditions persist, it “will need to be yet more ambitious in the timing and intensity of our restructuring”.
Deutsche Bank’s DB, -1.53% DBK, +1.25% fallen 43% this year, compared with the 27% decline of the Stoxx Europe 600 banks index. Investors have sold European bank shares since the United Kingdom voted June 23 to leave the European Union.
Among other, the lender wants to settle U.S. investigations into mis-selling of mortgage-backed securities in the run-up to the financial crisis, where Deutsche Bank Deutsche begun settlement talks with the U.S. Department of Justice. Persistently low interest rates have squeezed potential revenues, while uncertainty both before and after the European Union referendum has put many clients off big ticket deals. They have lost 57% of their value in the past year. Revenue from asset management services fell 8% to €706m year-on-year.
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Deutsche Bank also reported it had lowered its non-interest expenses by 14 per cent to €6.7bn, thanks partly to lower litigation and compensation costs.
