Deutsche Bank Returns to Profit
After three consecutive years of losses, Germany’s largest bank returned to profit in the second quarter of the year. Still Deutsche Bank remains dogged by difficult problems.
New CEO Christian Sewing, who replaced ex-UBS executive John Cryan in May, has made an immediate impact. Deutsche Bank on Wednesday reported a second-quarter pre-tax profit of 711 million euros ($831 million), and Sewing expects stable full-year profits.
The German banking giant, in which Chinese conglomerate HNA owns 7.9 percent, is still caught in a painful transition period though. While it pared losses in the German private client business, profit in the key bond-trading business dropped sharply. Costs though remain persistently high, slipping only 1 percent in the second three months of the year to 5.6 billion euros.
Last but not least, its funds unit DWS continues to struggle. It generated 561 million euros in the period, down 17 percent on the year.
