Deutsche Bank sees profit of $363 million as costs fall

Germany's Deutsche Bank made a profit of 309 million euros in the third quarter

Via AP news wire
Wednesday 28 October 2020 07:31
Germany Daily Life Economy
Germany Daily Life Economy

Deutsche Bank reported a third-quarter profit of 309 million euros ($363 million), its third straight quarterly profit this year, as it saw fewer losses from selling off unwanted assets and revenues rose at its investment bank

CEO Christian Sewing said the bank was continuing to make progress on a long-term restructuring aimed at improving profits by shedding less profitable or riskier lines of business and cutting employee numbers.

“Our more focused business model is paying off and we see a substantial part of our revenue growth as sustainable,” Sewing said in a statement accompanying the earnings release on Wednesday.

The profit compared to a loss of 832 million euros in the same quarter a year ago. Third-quarter results were boosted by lower losses from the capital release unit aimed at exiting businesses and investments the bank no long considers part of its long-term strategy. Revenues at the investment bank unit rose 43% to 2.4 billion. Money that had to be set aside to cover loans that aren't being repaid increased 56% to 273 million euros in the quarter from the year-ago quarter, but fell from 761 million euros in the previous quarter.

The bank said it was on target to reach all of its financial and strategic goals included in its restructuring, aimed at exiting a period of low profitability and regulatory and legal issues that cost the bank billions.

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