Frankfurt am Main: Deutsche Bank, Germany’s biggest lender, said on Wednesday that a new restructuring programme pushed it deeply into the red in the second quarter.
The troubled financial giant said in a statement it booked net loss of 3.2 billion euros ($3.6 billion) in the period from April to June, compared with bottom line profit of 231 million euros a year earlier.
“We have already taken significant steps to implement our strategy to transform Deutsche Bank. These are reflected in our results,” chief executive Christian Sewing said in a statement.
Earlier this month, Deutsche Bank said it would slash 18,000 jobs worldwide by 2022, retreat from most share trading activities and refocus on its German and European business, after decades attempting to compete with Wall Street titans.
The moves also aim to slash annual costs by six billion euros.
Related restructuring costs amounted to 3.4 billion euros in the second quarter and without them, Deutsche Bank would have made 231 million euros after tax, it calculated.
For some observers, the weak results confirmed fears that the bank had set itself overambitious profitability targets over the restructuring period.
“Even counting out the restructuring effects, they won’t reach the target for 2019 of a return on tangible equity of four per cent,” analyst Andreas Plaesier of MM Warburg bank said. — AFP