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Abu Dhabi, UAETuesday 20 November 2018

Deutsche Bank net profit falls 65 per cent in third quarter amid 'cost-cutting progress'

Bank expects to be profitable for the full year for the first time since 2014

Deutsche Bank has shed 2,800 jobs this year. Reuters
Deutsche Bank has shed 2,800 jobs this year. Reuters

Net profit at Deutsche Bank fell 65 per cent in the third quarter to €229 million (Dh964.1m) as revenue from trading stocks and bonds fell.

But chief executive Christian Sewing said the bank made progress cutting costs and would be profitable for the full year for the first time since 2014.

Net income was down from €649m in the same quarter a year ago. The bank said on Wednesday that income from fixed-income and stock trading fell 15 per cent amid lower client activity.

The bank said it was on track to meet its targets for cost and staff reductions, having shed 2,800 jobs this year to bring headcount to 94,717.

Deutsche Bank has struggled with weak earnings and costs from regulatory and legal fines, settlements and penalties, losing money for three straight calendar years. The bank replaced chief executive John Cryan with Mr Sewing in April amid promises to move faster to cut costs and focus the bank's activities more on its European base rather than compete with US financial institutions on Wall Street.

Mr Sewing said that "this result is another milestone on our way to becoming a sustainably profitable bank".

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