Deutsche shares slump as Q2 profits dive

Deutsche Bank shares fell by 5% this morning, as the group announced a 67% decline of pretax profits for the second quarter of 2016 and 20% lower revenues year on year.

The group attributed the fall of profits to goodwill impairment charge of €285m, restructuring and severance charges of €207m, and litigation charges of €120m.

Deutsche also provided an update on its restructuring measures, which are set to affect 3000 positions in Germany and will lead to the creation of a new US-based holding company.

Deutsche Bank CEO John Cryan commented on the results: “While our results show that we are undergoing a sustained restructuring, we are satisfied with the progress we are making.”

He continued: “We have continued to de-risk our balance sheet, to invest in our processes and to modernise our infrastructure. However, if the current weak economic environment persists, we will need to be yet more ambitious in the timing and intensity of our restructuring.”

ABOUT THE AUTHOR
Mona Dohle
Mona Dohle speaks German and Dutch, she is DACH & Benelux Correspondent for InvestmentEurope. Prior to that, she worked as a journalist in Egypt and Palestine. She started her career as a journalist working for a local German newspaper. Mona graduated with an MSc in Development Studies from SOAS and has completed the CISI Certificate in International Wealth and Investment Management.

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