Deutsche Bank (DB) said Wednesday that it took a charge of €3.4 billion ($3.8 billion) for the three months ending in June, leading to a net loss of €3.1 billion ($3.46 billion).
The performance was even worse than the bank had telegraphed: It said on July 7 that costs related to the overhaul would push it to a net loss of €2.8 billion ($3.1 billion) for the second quarter.
Shares dropped about 5% in Frankfurt on the news.
Without the restructuring cost, Deutsche Bank said it would have reported a net profit of €231 million ($257.4 million), down 42% on the same period last year.
"Excluding transformation charges the bank would be profitable and in our more stable businesses revenues were flat or growing," CEO Christian Sewing said in a statement.
But even that profit number was below what analysts had predicted.
Deutsche Bank is cutting 18,000 jobs and dramatically shrinking its investment bank as part of the overhaul. Sewing has described the plans as "nothing short of reinventing" Deutsche Bank.
For years, the lender has struggled to bring in consistent profits, and its stock hit an all-time low in June. But shifting the bank toward more reliable sources of revenue, such as corporate money management, is an expensive project. The transition is expected to carry a price tag of €7.4 billion ($8.3 billion) by 2022.
So far, more than 900 employees have either been given notice or informed that their role will be eliminated, according to the bank.
https://www.cnn.com/2019/07/24/investing/deutsche-bank-net-loss/index.html
2019-07-24 08:11:00Z
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