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Deutsche Bank beats estimates, Q3 net more than doubles; revenue falls 7%

Operating profit increased 51%, to 933 million euros, but revenue fell 7% to 6.8 billion euros

AFP | PTI  |  Frankfurt Am Main 

Deutsche Bank. Photo: Reuters
Deutsche Bank. Photo: Reuters

Germany's biggest lender Deutsche Bank reported a third-quarter net profit more than double 2016's figure on Thursday, as it continues to battle through restructuring and Europe-wide headwinds.

The bank booked net profits attributable to shareholders of 647 million euros ($765 million) between July and September, 153 per cent higher than the same period last year and better than forecast by analysts surveyed by Factset.

Operating profit increased 51 per cent, to 933 million euros, but revenue fell 7.0 per cent to 6.8 billion euros.

"The revenue environment remains challenging," chief executive John Cryan said, while adding that "we have made significant progress" on restructuring plans aimed at streamlining the bank.

Cryan took the helm in 2015 to right Deutsche after years of economic crisis, low interest rates in its European home region and thousands of high-profile legal cases targeting the lender.

While most of the biggest cases have been cleared aside, a reminder of the remaining burden came yesterday, as the bank agreed with 44 US states and the District of Columbia to pay $220 million over the Libor interest rate fixing scandal.

Looking to the bank's different divisions, corporate and investment banking revenues were down 23 percent in the third quarter as Deutsche complained of "muted client activity and low volatility".

The private and commercial bank reported revenues up by 3.0 per cent, while the asset management unit's results were stable compared with the same period last year.

Deutsche offered no forecast for its full-year performance.

First Published: Thu, October 26 2017. 12:31 IST