Wednesday 30 October 2019 8:49 am

Deutsche Bank losses hit €832m amid restructuring and revenue slump

Deutsche Bank posted deepening losses during the last three months as the troubled German lender pressed ahead with a costly turnaround plan.

A double-digit drop in revenues and costs from the firm’s major restructuring pushed losses down to €832m (£718m) over the quarter, compared with profit of €229m in the same period last year.

Read more: Deutsche Bank CEO: Central banks lack tools to prevent economic crisis

Revenue at the bank hit €5.3bn, slumping 15 pet cent and missing Refinitiv estimates of €5.6bn.

Deutsche Bank’s share price edged down almost six per cent in late-morning trading.

The embattled banking giant has now posted its second consecutive quarterly loss after unveiling a huge overhaul of the business in the summer, when the lender revealed its retreat from investment banking after decades of trying to rival its Wall Street peers.

Further signs of trouble in the firm’s investment divisions were underlined today when Deutsche Bank posted a 13 per cent year-on-year drop in its key bond-trading division.

Neil Wilson, chief market analyst at Markets.com, said: “Can it get any wurst? Management are comfortable with the figures, largely because they reflect large restructuring costs that they think will not last forever and the core bank posted a pre-tax profit of €352m.”

Read more: Standard Chartered trumps expecations as profit rises

He added: “Restructuring takes time, of course, and may be more expensive than analysts think, but Deutsche has had a decade and several attempts at this already.”

Spiralling costs, a swathe of high-profile financial investigations and botched merger plans have contributed towards struggles at Deutsche Bank.

In July its chief executive Christian Sewing announced that he was shutting its loss-making equities business and axing thousands of jobs globally.

Share: