Deutsche Bank reports second-quarter profit despite loan losses

The gain compared with a loss of 3.1 billion euros in the year-earlier quarter, when the bank had large expenses related to its ongoing restructuring.
Deutsche Bank (Photo | Reuters)
Deutsche Bank (Photo | Reuters)

FRANKFURT: Deutsche bank reported a small net profit of 61 million euros in the second quarter as cost-cutting and revenue growth outweighed increased loan losses due to the virus outbreak.

The gain compared with a loss of 3.1 billion euros in the year-earlier quarter, when the bank had large expenses related to its ongoing restructuring.

The Frankfurt-based bank said Wednesday it had cut its cost base by 10 percent to 4.8 billion euros as it presses ahead with a drawn-out transformation aimed at improving profitability by reducing costs and riskier investments and activities.

The bank said that set-asides for loans that aren't being repaid rose to 761 million euros in the quarter, from 161 million euros in the same quarter a year ago.

Revenues rose 1 percent to 6.29 billion euros.

Chief financial officer James von Moltke said that the bank is "fully on track" with a restructuring that is shedding employees and reducing costs.

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