Deutsche Bank reports Q2 net income EUR401M, down 14% y/y
Deutsche Bank reported net income of 401 million euros in the second quarter of 2018, down 14% year-on-year, on profit before tax of 711 million euros, down 13% year-on-year. These results were achieved against a backdrop of accelerated implementation of strategic measures announced by the new management team at the beginning of the quarter. The Common Equity Tier 1 ratio rose from 13.4% to 13.7% in the quarter and remains well above the bank's target of over 13%. The fully loaded leverage ratio rose from 3.7% to 4.0%, as management executed on its strategic objective to reduce leverage exposure in the Corporate & Investment Bank. Net revenues were 6.6 billion euros, essentially unchanged versus the second quarter of 2017 on a reported basis. On a full-time equivalent basis, the number of internal employees was 95,429 at the end of the quarter, the lowest level since the acquisition of Postbank in 2010. This was down approximately 1,700 in the quarter. The reduction primarily reflects management action to implement strategic measures announced in April 2018. In the year to date, workforce reductions came to 2,100 full-time equivalents. Management believes the bank is on track to reduce the workforce, as previously announced, to below 93,000 by the end of 2018 and well below 90,000 by the end of 2019. Provision for credit losses was 95 million euros in the quarter, up from 79 million euros in the second quarter of 2017. Christian Sewing, CEO, said: "In the second quarter we accelerated the reshaping of our bank significantly and proved the resilience of our global business. We're making important changes to our core businesses as promised, we're headed in the right direction on costs, and our balance sheet quality is strong. This gives us the flexibility to invest in areas where we have particular strengths."