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Home / Business / Deutsche Bank Q3 2019 Earnings

Deutsche Bank Q3 2019 Earnings



Statues stand outside a Deutsche Bank AG branch in Frankfurt, Germany.

Krisztian Bocsi | Bloomberg | Getty Images

Deutsche Bank reported a net loss that missed market expectations on Wednesday as a major restructuring plan continues to weigh on the German lender.

It reported a net loss of EUR 832 million ($ 924 million) for the third quarter of 2019. Analysts expected a loss of EUR 778 million, according to data from Refinitive. It had reported a net profit of EUR 229 million in the third quarter of 201

8, but a loss of EUR 3.15 billion in the second quarter of this year.

Here are some of the key highlights:

  • Total net revenues: EUR 5.3 billion in the third quarter compared to EUR 6.2 billion a year ago.
  • Common Equity Share 1 was 13.4% in the third quarter, up from 14% a year ago.
  • Total non-interest expenditure: EUR 5.8 billion in the third quarter, against EUR 5.6 billion a year ago.

"Despite starting the most comprehensive restructuring of our bank in two decades, we delivered profits in our four core businesses during the quarter, growing loans and assets under management," said Christian Sewing, CEO of Deutsche Bank, in a statement.

He added: "Transformation is fully underway with concrete advances in cost and risk. A 13.4% CET1 ratio underlines our strength."

The shattered German lender has struggled since th the global financial crisis of 2008 and the subsequent eurozone debt crisis. The bank has had billions of dollars, increased market competition, lower market share in both commercial and investment banking, as well as a number of management changes.

Earlier this year, Deutsche Bank announced a broad restructuring plan in an attempt to revive its operations. At that time, Sewing said the bank would abandon its global equity business, scale back investment banking and cut thousands of jobs. The German bank also plans to cut 18,000 jobs worldwide by 2022.

At the end of the third quarter of 2019, Deutsche Bank reported that it had 89,958 employees – down 5% from a year ago.

Higher costs [19659015] Investment bank net income fell 5% from a year ago. Private banking also saw a 3% fall in net income, and net revenues in management also fell by 4% from a year ago.

Deutsche Bank cited higher spending in the company's, investment and private banking units. These include higher costs for controls, technology and internal services. Meanwhile, managed funds rose to € 754 billion in the third quarter – up 9% from a year ago.

Deutsche Bank's shares have been reduced by about 16% from one year ago.


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