Deutsche Bank AG yesterday swung to a surprise net profit in the third quarter as it shook off losses driven by the COVID-19 pandemic and plowed on with a wide-ranging restructuring.
Germany’s largest lender posted a net profit of 182 million euros (US$214 million), compared with a loss of 942 million euros in the same period last year.
The results beat expectations for a loss of 82 million euros, based on a survey by FactSet, as Deutsche Bank started to move on from years of poor management and overblown investment banking ambitions with a transformation plan that launched last year.
“Our more focused business model is paying off,” chief executive Christian Sewing said. “We not only demonstrated continued cost discipline, but also our ability to gain market share.”
Last year, the bank said that it would cut 18,000 jobs, and figures show that it has already shed about 3,000 positions. The bank last month said that it would shutter about 100 branches, cutting its high-street presence by one-fifth, “reflecting changes in customer behavior patterns.”
For the nine months to last month, net profit was 62 million euros, compared with a net loss of 4.1 billion euros at the same point last year, when early provisions for its restructuring hit the business.
Deutsche Bank kept its outlook for this year, as it lowered its provision for loan losses compared with the lockdown-hit second quarter.
The Frankfurt-based institution set aside 273 million euros, 56 percent more than last year, but significantly less than 761 million euros in the three months to June when pandemic-related restrictions closed businesses and factories.
The group’s third-quarter results were once again driven by investment banking, which brought in 2.4 billion euros, up 43 percent year-on-year.
With the speed cryptocurrency is emerging as the millennial generation’s alternative asset of choice in India, it is hard to imagine that just two years ago a couple of blockchain pioneers were briefly in police custody. Sathvik Vishwanath and Harish BV, cofounders of a then five-year-old start-up, were arrested in late 2018. No, they had not pulled off a shady initial coin offering. Their “crime” was that they put up a kiosk in a mall in Bangalore where customers could swap bitcoin, ether or ripple for cash or vice versa. That was the whole point of unocoin, their crypto token exchange.
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