Deutsche Bank sees profit of EUR309M as costs fall

FRANKFURT, GERMANY (AP) — Deutsche Bank reported a third-quarter profit of EUR309 million (USD363 million), its third straight quarterly profit this year, as it saw fewer losses from selling off unwanted assets and revenues rose at its investment bank.

CEO Christian Sewing said the bank was continuing to make progress on a long-term restructuring aimed at improving profits by shedding less profitable or riskier lines of business and cutting employee numbers.

“Our more focussed business model is paying off and we see a substantial part of our revenue growth as sustainable,” Sewing said in a statement accompanying the earnings release yesterday.

The profit compared to a loss of EUR832 million in the same quarter a year ago.

Third-quarter results were boosted by lower losses from the capital release unit aimed at exiting businesses and investments the bank no long considers part of its long-term strategy.

Revenues at the investment bank unit rose 43 per cent to 2.4 billion. Money that had to be set aside to cover loans that aren’t being repaid increased 56 per cent to EUR273 million in the quarter from the year-ago quarter, but fell from EUR761 million in the previous quarter.

The bank said it was on target to reach all of its financial and strategic goals included in its restructuring, aimed at exiting a period of low profitability and regulatory and legal issues that cost the bank billions.

The headquarters of the Deutsche Bank in Frankfurt, Germany. PHOTO: AP