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.