Deutsche Bank profits tumble 65%

Deutsche Bank
Deutsche Bank continue to cut staff bonuses, amid mounting financial woe.

Deutsche Bank posted a 65% fall in profits for the third quarter, as the bank continues to struggle to turnaround its fortunes.

Pre-tax profit fell 46 per cent to €506 million (£447 million) year-on-year for the quarter. Whilst somewhat disappointing, this was an improvement on analyst expectations of €328 million.

Net income came in at €229 million, compared to €649 million for the same period last year.

Revenue fell nine per cent €6.2 billion, which the bank attributed to weaker performance of its corporate and investment bank.

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Deutsche Bank’s new chief executive, Christian Sewing commented: “We have our costs under control and sufficient capital to grow. We are on track to be profitable in 2018, for the first time since 2014,”

The bank has struggled in recent years, having posted three consecutive years of losses and amid a raft of negative press.

Back in June, Deutsche Bank failed the second round of Federal Reserve stress tests. The tests asses a bank’s ability to withstand a financial crisis.

The German bank was the only bank to fail the second round, due to “widespread and critical deficiencies across [its] capital planning practices.”

As a result of these troubles, the bank is currently undergoing an extensive restructuring process.

Shares in Deutsche Bank (ETR:DBK) are currently trading -3.14% as the market reacts to the latest results.

Elsewhere in the banking sector, Barclays (LON:BARC) posted a more encouraging set of results, with profits of £1.5 billion in the three months to September 30.

This marked an improvement from the £1.1 billion reported during the same period last year.

Nevertheless, profits at the British bank were weighed down by costs relating to a £1.4 billion settlement with the US Department of Justice back in March.

Shares in Barclays are currently trading +2.86% as of 12.04PM (GMT).