Deutsche Bank: on track for profit in 2018, but shares lag
(CercleFinance.com) - Deutsche Bank is on track to be profitable in 2018, for the first time since 2014, the German lender said on Wednesday, although the group's message did not seem to reassure investors.
This morning, Deutsche Bank reported Q3 pre-tax profit of 506 million euros, versus 933 million euros in the same period last year.
Net income was 229 million euros, compared to 649 million euros a year ago.
The bank's revenues fell 9% to 6.2 billion euros, due to lower volatility and reduced client volumes in the corporate and investment banking division over the quarter.
Analysts at UBS pointed out that, while headline results are better than expected, underlying numbers were "below consensus."
"This is entirely driven by lower than expected litigation/restructuring and risk costs," the broker said.
Regarding progress towards its cost targets, Deutsche Bank said cuts in its workforce were on track. The management team reinstated its targets to reduce the workforce to below 93,000 by the end of 2018 and well below 90,000 by the end of 2019.
However, these prospects fell short of pleasing the market: Deutsche Bank shares are currently down 4.2% at 8.9 euros, while the STOXX Europe 600 Optimised Banks index is down 0.4%.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
This morning, Deutsche Bank reported Q3 pre-tax profit of 506 million euros, versus 933 million euros in the same period last year.
Net income was 229 million euros, compared to 649 million euros a year ago.
The bank's revenues fell 9% to 6.2 billion euros, due to lower volatility and reduced client volumes in the corporate and investment banking division over the quarter.
Analysts at UBS pointed out that, while headline results are better than expected, underlying numbers were "below consensus."
"This is entirely driven by lower than expected litigation/restructuring and risk costs," the broker said.
Regarding progress towards its cost targets, Deutsche Bank said cuts in its workforce were on track. The management team reinstated its targets to reduce the workforce to below 93,000 by the end of 2018 and well below 90,000 by the end of 2019.
However, these prospects fell short of pleasing the market: Deutsche Bank shares are currently down 4.2% at 8.9 euros, while the STOXX Europe 600 Optimised Banks index is down 0.4%.
Copyright (c) 2018 CercleFinance.com. All rights reserved.