Deutsche Bank shares down almost 3% after posting 832 million euro loss

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 832 million euros ($924 million) for the third quarter of 2019. Analysts were expecting a loss of 778 million euros, according to data from Refinitiv. It had reported a net profit of 229 million euros in the third quarter of 2018, but a loss of 3.15 billion euros in the second quarter of this year.

Here are some of the key highlights:

Total net revenues: 5.3 billion euros in the third quarter vs. 6.2 billion euros a year ago.Common equity tier 1 ratio stood at 13.4% in the third quarter, vs. 14% a year ago.Total non interest expenses: 5.8 billion euros in the third quarter, vs. 5.6 billion euros a year ago.

“Our results in the quarter are entirely in line with our plans. We are executing, I think, well against the strategic changes we announced in the summer,” James von Moltke, chief financial officer at Deutsche Bank, told CNBC’s Annette Weisbach.

He added: “Our net loss is a little better than our internal planning and our capital ratio at 13.4% stable quarter-on-quarter demonstrates what we set out.”

The embattled German lender has struggled since the global financial crisis of 2008 and the subsequent debt crisis in the euro area. The bank has faced billion-dollar fines, increased market competition, a lower market share in both commercial and investment banking, as well as a series of management changes.

“I wouldn’t expect (a) big announcement of headcount reductions, but (a) steady execution of our plans.-James von Moltke CHIEF FINANCIAL OFFICER AT DEUTSCHE BANK

Earlier this year, Deutsche Bank announced a wide restructuring plan in an attempt to revive its business. At the time, Christian Sewing, CEO of Deutsche Bank, said the lender would be exiting its global equities business, scale back investment banking and slash thousands of jobs. The German bank 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 — a 5% drop from a year ago.

Speaking to CNBC, von Moltke explained that the job cuts are “rolling through the company.” He added: “I wouldn’t expect (a) big announcement of headcount reductions, but (a) steady execution of our plans.”

Higher costs

Net revenues in investment banking fell 5% from a year ago. The private bank business also saw a 3% fall in net revenues and net revenues in asset management also decreased by 4% from a year ago.

Deutsche Bank cited higher expenses in its corporate, investment and private banking units. These included higher spending on controls, technology and internal services. Meanwhile, assets under management rose to 754 billion euros in the third quarter — a 9% increase from a year ago.

Shares of Deutsche Bank fell by 2% in early European trading hours. Its stock price is down by about 16% from a year ago.


Vezi reducerile de sezon din magazinele:

eMag , Evomag , Libris , Vegis , QuickMobile , FashionDays

Nu uita sa dai SHARE daca ti-a placut acest articol!

Investește la bursă prin:

76% din conturile CFD de retail pierd bani

NOTE & Risk warnings: Your capital is at risk. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79.17% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. I AM NOT A FINANCIAL ADVISOR and THIS IS NOT INVESTMENT ADVICE. I am just sharing my opinion and views alone on the market. What you do with your own money is your own responsibility. Seek a licensed CPO or financial advisor before you make any investments. Any references to historical price movements or levels is informational and based on external analysis and we do not warranty that any such movements or levels are likely to reoccur in the future. The financial services provided by this website carry a high level of risk and can result in the loss of all your funds. You should never invest money that you cannot afford to lose. Please be advised that certain products and/or multiplier levels may not be available for traders from EEA countries due to legal restrictions.

In ce investim la bursa ?

Investeste in actiuni la bursa:

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.