Deutsche Bank reports surprise Q3 profit
Troubled German lender Deutsche Bank reported Thursday a surprise 256-million-euro ($279 million) profit in the third quarter, compared with a loss of more than six billion in the same period last year.
Deutsche outdid the expectations of analysts surveyed by Factset, who had predicted it would book a loss of 949 million euros between July and September.
The group said revenues increased to 7.5 billion euros, slightly up from 2015’s third quarter, driven by 10-percent growth in its investment banking division.
Revenues declined in all other business areas, which Deutsche said was largely down to the “impact of the ongoing low interest rate environment”.
“We continued to make good progress on restructuring the bank,” chief executive John Cryan said in a statement.
Financial markets and politicians have been closely watching the fortunes of Germany’s biggest lender as it goes through a painful restructuring and deals with the fallout of the financial crisis.
It was labelled “the most important net contributor to systemic risks in the global banking system” by the IMF in June.
CEO Cryan acknowledged the “unsettling” effect of a $14-billion fine demand from the US Department of Justice in September over Deutsche’s role in the mortgage-backed securities crisis, news of which sent the bank’s share price to historic lows of 9.90 euros.
“The bank is working hard on achieving a resolution of this issue as soon as possible,” Cryan said.
A source told AFP in late September the bank was in talks with the DoJ to reduce its fine to around 5.4 billion euros, although the final figure could change.