Deutsche Bank lifts profits on restructuring

FRANKFURT AM MAIN: Germany’s biggest lender Deutsche Bank said on Thursday it had lifted profits in the second quarter, as it labours to return to healthy growth after years of business and legal woes. Deutsche reported net profits attributable to shareholders of 447 million euros ($547.4 million) between April and June, up from just 18 million in the second quarter last year.

The bank was able to more than double its operating or underlying profit to 822 million euros, although revenues fell 10 per cent compared with the same period in 2016 to 6.6 billion euros.

Revenues fell across Deutsche’s corporate and investment banking, private and commercial banking, and asset management divisions.

“Despite the significant improvement, this level of profitability falls short of our longer term aspirations. Revenues were not as universally strong as we would have liked,” chief executive John Cryan said in a statement.

He pointed to “good progress” in bringing costs down some 15 per cent compared with the second quarter in 2016.

Deutsche is undergoing an arduous restructuring after years of losses, in part due to massive fines from regulators over its role in the financial crisis. The bank reported a 1.4-billion euro loss in 2016, after fresh fines on top of low interest rates and tougher post-crisis regulations that affect all euro zone banks. — AFP