Share of Deutsche Bank attracts: Deutsche Bank reaches a surprising profit | 07/16/18

The new boss of Deutsche Bank, Christian Sewing, has a first success in the rehabilitation of the bank.

Through the reduction of thousands of jobs and lower costs, the largest German bank makes a surprisingly high profit in the second quarter: The net profit is about 400 million euros. euros, as explained the Institute Monday in Frankfurt. Thus, Deutsche Bank has clearly exceeded the expectations of analysts. They were on average 159 million euros, less than half. In the stock market, Deutsche Bank shares rose more than 7% and were at the close of trading for the first time in weeks with 10.31 euros more than the 10-euro mark.

The news supports Sewing, which was pushed to the head of the bank in April as a successor to John Cryan. After three consecutive years of losses and billions of fines for scandals, he ordered the institute to restructure and cut back thousands of jobs, particularly in investment banks. difficulty. "I am very confident that we will reduce the number of full – time jobs below 93,000 by the end of the year," Sewing told the news agency. German. Details on the job cut the bank at the presentation of the quarterly full balance on July 25.

Even with the notoriously high costs in the group sees Sewing the bank on the right track. The cost target of 23 billion euros for 2018 will be achieved, he said. In the second quarter, expenses reached 5.8 billion euros, after 6.5 billion euros in the first quarter. Such a drop is surprising because the job cuts and the merger of Postbank and Deutsche Bank cost a lot of money.

Cryan had already launched in 2015 the cancellation of approximately 9,000 jobs and closed branches. Critics held the British but too much hesitation in corporate restructuring. Under the pressure of the pursuit of bad news, the old hopes are gone.

Sewing now expects a pre – tax profit of 700 million euros in the second quarter and 1.15 billion euros in the first half. The profit should be according to preliminary figures to 6.6 billion euros, also more than expected by analysts. This total business figure of the bank has been eroded in recent years because it has just lost ground in investment banking compared to US competition.

Measured against the same quarter last year, profits are not at a minimum. Asset sales and positive balance sheet effects helped. While yields on securities such as bonds fell again, they gained ground in the advisory sector. "We have managed to stabilize the investment bank in a difficult environment," said Sewing

. The results have proved the stability of the bank, explained the managing director, despite the headwinds we have seen in recent months. He again tried to dispel concerns about the stock market. Faced with the current crisis, there were doubts as to whether the bank would survive alone. It was not until early June that the title fell to its lowest level of 8.75 euros. Now she jumped at least on the mark of 10 euros. The news that Deutsche Bank's capital base has become denser has also been relieved. In the long run, however, the fall of the stock is staggering: before the financial crisis of 2007, paper was worth ten times more.

It's too early to turn around. In the second quarter of 2017, Deutsche Bank had won 466 million euros. Measured by the house of money is even with the profits surprise even lower than last year 's level. Wall Street competition, meanwhile, has long since evolved away, also because they play the cheap dollar in the hands: JP Morgan has won from April to June this year the equivalent of about 7.1 billion euros, the Bank of America 5.8 billion Euro

Analysts were skeptical before announcing the exact figures: the jubilation of shareholders who suffer has long been understandable, writes Daniele Brupbacher of the Swiss bank UBS. For the moment nothing changes in the overall situation of the house of money. "We expect Deutsche Bank to continue to lose market share in 2018.">

FRANKFURT (dpa-AFX)