Deutsche Bank shares opened lower in the European trading day Wednesday, after the German bank posted a 14% drop in its second quarter profit. While that was a smaller decline than had previously been expected, it highlights the tough time the bank has experienced in recent months.
By 0910 BST, Deutsche Bank shares were 1.59% lower at €10.29. The stock has been moving broadly higher in recent weeks.
Deutsche Bank Q2 results
Deutsche Bank said Q2 profits hit €401 million, a 14% drop from the same period a year earlier. Net revenues in the second quarter, meanwhile, were €6.6 billion, unchanged from Q2 2017.
Other details showed that the restructure of the business is very much underway. Costs rose 1% from a year earlier due to higher costs associated with the restructure and turnaround of the business.
However, Deutsche Bank also confirmed it had slashed 2,100 full-time positions at the business, so far this year. “The reduction primarily reflects management action to implement strategic measures announced in April 2018,” Deutsche Bank said.
“In the second quarter we accelerated the reshaping of our bank significantly and proved the resilience of our global business,” said CEO Christian Sewing.
“We’re making important changes to our core businesses as promised, we’re headed in the right direction on costs, and our balance sheet quality is strong. This gives us the flexibility to invest in areas where we have particular strengths,” he added.
The German investment bank has experienced a tough few months, although Sewing has shown a firm hand since his appointment in April of this year.
As well as detailing the number of job cuts that have already been implemented, the business added that it is now on track to reduce the global work force to “below 93,000 by the end of 2018 and well below 90,000 by the end of 2019.”
Deutsche Bank also said that the current credit and market risk was close to historic lows. However, it still increased its provision for credit losses to €95 million form €79 million in Q1.