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.”