A Deutsche Bank AG flag flies outside the company’s office on Wall Street in New York.
Mark Kauzlarich | Bloomberg | Getty Images
Deutsche Bank on Wednesday reported a net loss attributable to shareholders of 77 million euros ($90.3 million) for the second quarter of 2020.
This marks a stark improvement from the bank’s 3.2 billion euro loss for the same period last year in the throes of a mass restructure, and outstrips its own consensus estimates of a 133 million euro net loss. Analysts polled by Reuters had projected a net loss of 182.9 million euros.
The German lender allocated credit loss provisions of 761 million euros, up from 506 million in the first quarter, and said it had increased its investment bank provisions significantly to reflect the expected impact of the coronavirus pandemic. This figure re-affirmed the bank’s full-year guidance of 35-45 basis points of loans.
Here are some other highlights for the quarter:
- Group net revenues hit 6.3 billion euros, versus 6.2 billion euros a year ago.
- Common equity tier 1 capital ratio of 13.3%, versus 13.4% a year ago.
In its earnings report, the bank claimed its transformation efforts were fully on track, with non-interest expenses down 23% year-on-year to 5.4 billion euros.
Deutsche now anticipates that full-year revenues will be “essentially flat,” offering slightly more optimistic guidance than previous projections.
“In a challenging environment we grew revenues and continued to reduce costs, and we’re fully on track to meet all our targets,” CEO Christian Sewing said in a statement.
“This enabled us to more than offset higher provision for credit losses and remain profitable while supporting clients through difficult conditions.”
