Deutsche Bank profits plunge 98%

iStockPhoto

The German lender said second-quarter net revenue was €7.4 billion, a 20% decline from the same period a year earlier.

Deutsche Bank’s shares have fallen 43% this year, compared with the 27% decline of the Stoxx Europe 600 banks index. Investors have sold European bank shares since the UK voted June 23 to leave the European Union.

Deutsche Bank has been hit harder than most. The Frankfurt-based bank is cutting costs and clients and trying to satisfy new, more-stringent capital requirements over the next three years. Its turnaround strategy has eaten into trading and investment banking revenue, and investors’ concerns about the adequacy of its capital cushion have persisted.

The bank also has been trying to settle regulatory investigations expected to result in big fines, another uncertainty for investors.

In July 2015, John Cryan, a former banker and finance chief of UBS, took over as co-chief executive of Deutsche Bank, replacing Jürgen Fitschen and Anshu Jain. Fitschen stayed on as co-CEO until May and remains an adviser. Jain left last year. Cryan is now sole CEO.

Write to Jenny Strasburg at jenny.strasburg@wsj.com

This article was published by The Wall Street Journal

More from Investment Banking

Let’s block ads! (Why?)

Investment Banking – Financial News Online

You May Also Like

Leave a Reply

Your email address will not be published. Required fields are marked *