Deutsche Bank increases quarterly profit

Frankfurt / Main (dpa) – Despite the increased costs for the corporate restructuring, Deutsche Bank is on course for a billion-dollar profit in the current year.

Germany’s largest financial institution earned a little more than a year in the third quarter previously, as the bank announced on Wednesday. The institute has thus made a profit for five quarters in a row.

CEO Christian Sewing sees the restructuring, which has been ongoing since 2019, including the reduction of thousands of jobs, on the home straight. «Overall, we have already shouldered percent of the expected burdens from the transformation and are well on the way to reducing the conversion costs To have digested almost completely by the end of the year “, the manager wrote to the workforce.

” At the same time, however, it is also clear: We mustn’t let up a bit on our disciplined path, “warned Sewing. “Let us not repeat the mistake of times gone by: that we lose speed when we are back on track.” Million euros profit in the books. That was 15 percent more than in summer 2020 . After taxes, the Dax group earned in the months of July to September 300 million euros, an increase of 6 percent. Minority interests and interest payments for equity-like bonds must be deducted from this, so that the bottom line is a profit of 113 million euros for the shareholders accounted for – 7 percent more than a year before.

2020 after almost five years of loss again in the black

In the first nine months totaled this net profit amounted to almost 1.8 billion euros. In the full year 2020, Deutsche Bank had for the first time after five consecutive years of losses with 113 million euros the bottom line was back in the black.

“In the third quarter we again demonstrated the operational strength of our business,” said Sewing. In comparison to the same period of the previous year, the income – i.e. the total income – increased contrary to expectations by around 100 million euros to a good 6 Billions of euros – even though they fell in the largest division, investment banking, compared to the strong period of the previous year of 8 percent after taxes that we have set ourselves for 2022, ”affirmed Sewing. “We are now doing everything we can to further reduce our costs without compromising our controls.”

The bank is cutting the branch network of its Postbank brand more closely than planned. By the end of 2023, the number of Postbank branches should decrease from around 750 to around 550 . When asked, CFO James von Moltke did not want to quantify how many jobs would be lost as a result. According to information from the “Frankfurter Allgemeine Zeitung” (Thursday), additional 300 jobs will be lost at Postbank as a result of the branch closings. Savings are also being made with the main brand: of the scarce 500 branches with the Deutsche Bank logo, 400.

The bank also benefits from the fact that it had to save significantly less money for possible loan defaults than in the Corona year 2020. The risk provision purred from 1, 26 billion euros in the first nine months 2020 to now 261 million euros together. For the full year, the board expects the institute to be less than 0, 15 percent its loans must make risk provisioning. This would keep the charge below 675 million euros.

Customers must agree to fee increases

The quarterly result was charged with 98 million euros as a result of a ruling by the Federal Court of Justice. He had decided that banks would have to obtain the consent of their customers for changes to general terms and conditions. Many fee increases have therefore been suspended for the time being. Bank customers can reclaim part of fees that have been paid too much.

Deutsche Bank has been rebuilding since 2019. The institute has withdrawn from some business areas and downsized its capital market business. The number of full-time employees in the group fell to 54 at the end of September. 512, a year earlier it was 86. 984.

The board of directors had already made public that it was about 700 million euros for the group restructuring in the current year in addition to computer systems, job cuts and the downsizing of office space. Thus, the estimated total costs for the realignment then amount to 8.8 billion euros. In the third quarter, the conversion costs were 583 million euros, almost six times as high as a year earlier.

There are success reports from the fund subsidiary DWS: the publicly listed company gathered SDax of investors in the third quarter net 12 billion fresh money a. That drove the yields up. Before taxes, DWS earned on an adjusted basis 261 million euros and thus 26 Percent more than a year earlier – a record result.

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