The German Bank has surprised on Wednesday with a profit in the second quarter. Although Germany's largest credit institution for potential loan losses amounted to EUR 761 million – more than the required risk provisions for the full year 2019, the costs had to be reset, before it achieved a quarterly profit of 158 million euros and 61 million euros after taxes. Analysts had expected Deutsche Bank a quarter net loss of 109 million euros and provisions for possible loan losses with 821 million euros suspected. After the deduction of interest payments on subordinated bonds a quarterly loss of 77 million euros, however, is for the shareholders of Deutsche Bank, as the credit institution announced on Wednesday morning.
Hanno Mußler
editor in the economy.
F. A. Z.As the American competitors in the capital market business was booming even in the case of the Deutsche Bank in the second quarter. Investment banking delivered particularly boosted by a strong Underwriting and Advisory business with new bonds in the second quarter of 2020, a contribution to profit of 956 million euros before taxes, more than four times as much as in the second quarter of 2019.
Behind the other fields of business: In business with a company (unternehmer Bank) 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) delivered € 114 million profit, 27 percent more than in the prior-year quarter. 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.
credit losses expected
the Chairman of The Board Christian Sewing was very satisfied. "We have increased in a difficult environment, our income and our costs are further reduced and are on a good way to achieve our goals. We were able to compensate for the higher risk provisions more than and profitable stay.“ Although revenues increased in the group of only 1 percent in July 2019 for the core Bank's defined business segments, revenues rose in the low interest rate environment, by a surprising 6 percent to 6.4 billion euros. However, this was mainly due to the investment Bank, in which income grew by a whopping 46 percent.
However, the proceeds in the business Bank, stagnated in the private customer business fell in spite of the introduction of negative interest rates for new customers, or even 2 per cent. In asset management, in the managed client assets rose by 45 billion to 745 billion euros, net revenues declined even to 8 percent. Deutsche Bank argued that on some of the infrastructure funds only every other year, fees would be charged.
In the center due to the Corona-crisis expected credit losses are, however, currently. The higher risk provisions in the second quarter of the cases, to the worse economic Outlook and some items, it said on Wednesday morning from Deutsche Bank. After the first quarter, chief financial officer James Moltlke had forecast that Deutsche Bank will have to put back in the first half of the year 2020, more for bad loans than in the second.
Date Of Update: 29 July 2020, 06:19
