Admin I Wednesday, July 26, 2023
BERLIN – High costs for the restructuring of Deutsche Bank and legal disputes caused a drop in profits for the group in the second quarter.
The bottom line for shareholders was a profit of €763 million ($844 million), 27% less than a year earlier, the DAX-listed group said in Frankfurt on Wednesday.
Analysts, however, had expected an even greater slump.
Deutsche Bank explained the drop in profits with special costs totalling €655 million for the group restructuring and legal disputes, many in connection with old cases.
On the other hand, revenues increased more than expected. The bank’s net revenues climbed by 11% to €7.4 billion compared to the same period in the previous year, a stronger result than analysts forecast.
Significant growth in corporate banking and retail more than compensated for the marked decline in investment banking and the fund business.
The bank set aside significantly more money for loan defaults than in the previous year.
For the entire first half of the year, however, the bank reported its highest profit before tax since 2011, at almost €3.3 billion.
Chief executive officer Christian Sewing said he saw the bank as being well placed to achieve its objective.
