Deutsche Bank profits plummet 98% in Q2

Frankfurt, July 27: Deutsche Bank war ned it may need deeper cost cuts to turn itself around, after revenue fell sharply in the second quarter due to challenging markets and low interest rates.

“If the current weak economic environment persists, we will need to be yet more ambitious in the timing and intensity of our restructuring,” chief executive John Cryan said on Wednesday. “We will not deviate from tough decisions just to flatter ear nings in the short term.”

Cryan, who took the helm a year ago, has launched a deep overhaul of the bank, slashing jobs, revamping information technology and shrinking non-core assets.

But in contrast to some European peers, Deutsche is sticking with its strategic focus on investment banking, where its global reach has earned it the International Monetary Fund’s label of being the riskiest of all banks.

Deutsche’s cash-cow bond trading business slid by a fifth in the second quarter, contrasting with the perfor mance of some US heavyweights who benefited from a more robust home market. Deutsche said it expected revenue to pick up in the second half. Reuters