Deutsche Bank Shares Fall After Overhaul Costs Hit 2Q Results
July 24 2019 - 4:14AM
Dow Jones News
By Pietro Lombardi
Deutsche Bank AG (DBK.XE) shares are under pressure after a
larger-than-expected restructuring charge dragged the bank to a
3.15 billion-euro ($3.51 billion) loss in the second quarter.
The German bank said Wednesday that it booked a EUR3.4 billion
charge related to the deep overhaul it announced in July. Under the
plan, Deutsche will exit its global-equities sales and trading
business and cut 18,000 jobs.
The charge is higher than the figure of roughly EUR3 billion
that the bank had previously guided for.
The loss compares with a profit of EUR401 million a year
earlier.
Without the charge, the bank would have posted a net profit of
EUR231 million, it said.
"The restructuring is a big and expensive gamble for the bank
but one that many have thought necessary for some time," Oanda
said.
Deutsche shares were trading 5.3% lower at 0736 GMT.
Revenue declined 6% to EUR6.20 billion, with corporate and
investment bank revenue down 18% on year.
"Excluding transformation charges, the bank would be profitable
and in our more stable businesses revenues were flat or growing,"
Chief Executive Christian Sewing said.
The German bank expects revenue for the year to fall compared
with last year. "This decline is mainly due to our decision to exit
substantially all of our equities sales and trading business," it
said.
Write to Pietro Lombardi at pietro.lombardi@dowjones.com
(END) Dow Jones Newswires
July 24, 2019 03:59 ET (07:59 GMT)
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