earnings report. The German Bank’s figures showed another fall in profits in third quarter. However, Deutsche Bank’s CEO was upbeat and said they’re on track for profitability in 2018.
By 0840 BST, Deutsche Bank shares were 3.65% lower at €8.97. The stock has been trending lower in recent weeks.
Deutsche Bank’s Q3 earnings details
Deutsche Bank said Wednesday, that its third quarter profits before tax hit €506 million, down from €903 million in the same period a year earlier. Post-tax profits, meanwhile, were €229 million, 65% lower than the €649 million net profit reported in Q3 2017.
The decline in revenues, meanwhile, was smaller, as they totalled €6.175 billion in Q3 2018, a 9% drop from €6.776 billion in the same period a year earlier.
The bank said that revenue drop was partly reflective of “the non-recurrence of certain specific items in the prior year quarter, as well as lower volatility and reduced client volumes in the Corporate & Investment Bank”.
The results show the German Bank has failed to show a profit growth in three years. However, CEO Christian Sewing said he expects that to change.
“With profit before tax of €506 million, this result is another milestone on our way to becoming a sustainably profitable bank,” Sewing said. “We have our costs under control and sufficient capital to grow. We are on track to be profitable in 2018, for the first time since 2014.”
Cost cutting targets, job reductions, on track
Deutsche Bank has experienced a torrid year so far in 2018. However, since Sewing took the helm in April, the much-needed restructuring at the bank appears to have moved on apace.
Indeed, the well-known bank has made clear the need for further cost cutting a significant reduction in staffing levels.
Deutsche Bank said it continues to target a €23 billion reduction in adjusted costs, 2018 and a further €22 billion cost reduction, in 2019. The results also showed there were 700 fewer staff at the bank by the end of Q3, compared with the end of Q2.