Deutsche Bank reports second quarter profit despite loan losses

Deutsche Bank reports second quarter profit despite loan losses

The bank based in Frankfurt, Germany, said it had cut its cost base by 10% to €4.8bn (£4.34bn) as it presses ahead with a drawn-out transformation. Picture: PA

Deutsche Bank has reported a small net profit of €61m (£55.1m) 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 €3.1bn (£2.8bn) in the year-earlier quarter, when the bank had large expenses related to its ongoing restructuring.

£55.1 million Deutsche Bank's second quarter net profit

The bank based in Frankfurt, Germany, said it had cut its cost base by 10% to €4.8bn (£4.34bn) 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 are not being repaid rose to €761m (£688m) in the quarter, from €161m (£145m) in the same quarter a year ago. Revenues rose 1% to €6.29bn (£5.69bn).

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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