Wednesday , September 28 2022

The loss of more than three billion euros is due to corporate restructuring



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The radical restructuring with the abolition of 18,000 jobs, the German bank in the second quarter torn further in the red figures than expected. In announcing the plans in early July, the bank announced a much lower minus.

In the second quarter, Deutsche Bank suffered significant losses in key business areas. Especially in commerce, but also in the transaction bank, which received less than the institute. The money house has grown in its business with rich clients. Overall, a bill of € 3.15 billion will be lost due to billions of restructuring costs for the Group after taxes, Deutsche Bank reports. This is a little more than the bank has announced with the announcement of its new strategy in early July.

Conversion tears Deutsche Bank even deeper into the area of ​​loss than expected

"We have already taken important steps to implement our strategy and to transform Deutsche Bank," said Christian Sewing, executive director. "This is reflected in our results." Without the severity of the recovery, which the bank estimated at more than seven billion euros, the bank would be profitable.

Revenue from corporate and investment banks declined by 18 percent to 2.94 billion euros. Before tax, the loss of € 907 million occurred after a profit of € 475 million a year earlier. In the stock exchange, which has to be abandoned in the course of the reorientation, revenues have collapsed by 32 percent to 369 million euros. But in the consulting and emitting business, which Deutsche Bank will continue to rely on in the future, revenues have fallen by almost a third.

Deutsche Bank eliminates 18,000 jobs

The Subsidiary for DWS Asset Management performed well in the second quarter. Gross profit before tax increased by 21% to € 185 million. But it also helped for the tight constraints.

Again, Deutsche Bank faces serious restructuring: Chief Executive Officer Christian Sewing unites high-risk investment banking. Over the next three years, 18,000 jobs will be lost globally. One fifth of the total balance risks are included in an internal "bad bank".

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