Of all places in crisis: Why the Deutsche Bank trusts a profit for the year

the German Bank has been completed After the second quarter and the first half of the year 2020, surprisingly, a pre-tax profit, the Executive Board courageous.

Of all places in crisis: Why the Deutsche Bank trusts a profit for the year

the German Bank has been completed After the second quarter and the first half of the year 2020, surprisingly, a pre-tax profit, the Executive Board courageous. On the question of whether it could work after five years of losses, calculated, in the Corona-crisis with a profit in the full year to 2020, said chief financial officer James von Moltke on Wednesday to journalists: "We are working on it."

Hanno Mußler

editor in the economy.

F. A. Z.

to The shareholders of Moltke in the spring of 2022, a dividend for the year 2021 in view, which is hardly an Analyst previously expected. Most recently, the German Bank had paid for the year of 2018, a Mini-dividend of 11 cents per share.

Because of the weak business development chief Executive, Christian Sewing has little more than a year a profound rehabilitation. Sewings goal is A net profit in the year 2022, corresponding to a return on equity of 8 percent. The years up to then, years are considered to be Transitional. 4000 full-time jobs are now gone, another 14,000 are yet to come. All areas of the business, especially in the volatile investment banking such as equity trading, in which Deutsche Bank has Sewings analysis has no chance at leading competitive position, have been set.

4 percent return on equity

the group tag, more than 7 billion euros in remediation costs.More than three-quarters of them are now posted 300 million euros in the second quarter of 2020. In addition, pandemic, high level of loan defaults will be added now through the Corona. Stock analysts had therefore expected for the second quarter of 2020, and also for the year 2020 with a loss of the German Bank.

However, after a profit before tax of 158 million euros in the second quarter, a gross profit of 364 million euros after the first half of the year 2020 now to book. That's the equivalent of at least 4 percent return on equity – before taxes. After taxes, the Deutsche Bank reported for the second quarter, a small profit of 61 million euros, after the deduction of interest payments on subordinated bonds a quarterly loss of 77 million euros for the German shareholders of the Bank, however. Chief financial officer von Moltke insisted that the Deutsche Bank will be controlled according to the pre-tax result.

The pre-tax profit in the second quarter of 2020, contributed the investment banking division with 956 million euros, more than four times as much as in the second quarter of 2019. Behind the the other business fields: business (business banking) reached the German Bank after a loss in the prior-year quarter, this time a quarterly profit of 77 million euros, the asset management (especially the Fund company DWS) contributed € 114 million profit, 27 percent more than in the prior-year quarter.

"normalization" in the second half of the year

The greatest weakness in the business with private customers and small companies, the cost due to reconstruction and higher loan-loss provisions as in the previous year delivered a quarter of a loss, this time 241 million euros. The three "stable" areas of business are far from it, as originally planned, two-thirds of contributing to the profit. Asset management reported inflows of funds and the private client business, new customers and a growth in credit. But it suffered from the low interest rates. The Deutsche Bank is now demanding on customer deposits in the amount of 60 billion Euro, negative interest rates – 90 percent of which are in the unternehmer Bank. But also to new private customers, the Deutsche Bank – more enough to deter – on deposits over 100,000 euros, the negative interest rates of the European Central Bank.

Updated Date: 29 July 2020, 14:20

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