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Deutsche Bank Reports Modest Profit Amid Heavy Loan Losses

The bank reported a small net profit of €61 million ($71 million) in the second quarter as cost-cutting and revenue growth outweighed increased loan losses due to the virus outbreak.
  • 1 min Read

By AP News

The Associated Press is an independent, not-for-profit news cooperative headquartered in New York City. Our teams in over 100 countries tell the world’s stories, from breaking news to investigative reporting. We provide content and services to help engage audiences worldwide, working with companies of all types, from broadcasters to brands.
The Associated Press is an independent, not-for-profit news cooperative headquartered in New York City. Our teams in over 100 countries tell the world’s stories, from breaking news to investigative reporting. We provide content and services to help engage audiences worldwide, working with companies of all types, from broadcasters to brands.

Image: Deutsche Bank Towers, Frankfurt, Germany. Source: Deutsche Bank

FRANKFURT, Germany (AP) — Deutsche bank reported a small net profit of 61 million euros ($71 million) in the second quarter as cost-cutting and revenue growth outweighed increased loan losses due to the virus outbreak.

The gain compared with a loss of 3.1 billion euros in the year-earlier quarter, when the bank had large expenses related to its ongoing restructuring.

The bank based in Frankfurt, Germany, said Wednesday it had cut its cost base by 10% to 4.8 billion euros as it presses ahead with a drawn-out transformation aimed at improving profitability by reducing costs and riskier investments and activities.

The bank said that set-asides for loans that aren’t being repaid rose to 761 million euros in the quarter, from 161 million euros in the same quarter a year ago. Revenues rose 1 percent to 6.29 billion euros.

Chief Financial Officer James von Moltke said that the bank is “fully on track” with a restructuring that is shedding employees and reducing costs.

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Source: AP News

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