Christian Sewing, the new CEO of Deutsche Bank, speaks at the Deutsche Bank annual shareholders’ meeting on May 24, 2018 in Frankfurt, Germany. Shareholders, frustrated by years of poor performance by Deutsche Bank, are calling for Achleitner to step down.
Thomas Lohnes | Getty Images
LONDON — Deutsche Bank on Wednesday posted a large profit beat for the second quarter, despite its all-important investment banking arm suffering a slide in revenues.
The lender reported net income of 692 million euros ($818 million) for the second quarter of this year, while analysts had forecast a net profit of 328 million euros for the quarter, according to data collected by Refinitiv.
Despite the higher-than-expected profit, the German bank experienced a 11% drop in net revenues in its investment banking division, compared to a year ago. This unit had been critical in driving profit higher at the embattled bank in the first quarter of the year. Recent reports have suggested Deutsche Bank has lost some market share in this space in recent months.
Here are other highlights of this quarter:
- Total revenues stood at 6.2 billion euros, marginally lower from a year ago.
- Total expenses reached nearly 5 billion euros, down about 7% from a year ago.
- Its number of employees was 83,797, down from 86,824 last year.
“All our businesses have contributed to the year-on-year profit growth,” Christian Sewing, the chief executive officer at Deutsche Bank said in a statement, adding that the “priority now is to continue with our disciplined execution of transformation, quarter by quarter.”
The German lender also reported credit loss provisions of 75 million euros for this quarter. The stock is up about 18% year-to-date.