Deutsche’s Q2 results: Profits rise but regulatory challenges remain

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Deutsche Bank has published its results for the second quarter of 2014, reporting a 16% rise of income before taxes YoY, yet group net revenues declined by 4 %.

Against the current developments in asset allocation, Deutsche’s Corporate Banking and Securities Branch booked relatively strong results in the fixed income segment, with debt sales and trading net revenues at €1.8bn for the second quarter of 2014.

The banks CET1 capital ratio stabilised at 11.5%, remaining slightly below its ambition of 11.8%. Meanwhile, risk weighted assets increased by 7% YoY.

Another challenge remains the ongoing regulatory investigation against Deutsche due to its dark pool trading activities, as well as investigations due to its alleged role in the Libor interbank lending scandal. Group net income declined by 29% YoY due to non-tax deductible expenses such as litigation.

“In the first six months of 2014, Core Bank adjusted profits were EUR 5 billion, despite a tough operating environment and continued investments in our businesses as we implement Strategy 2015+” says Co-CEO’s Jürgen Fitschen and Anshu Jain (pictured).

“We remain committed to working systematically through our strategic agenda and, with enhanced capital strength, we face these challenges with greater confidence” they stressed.

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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