Deutsche Bank disappointed investors with their quarterly results. The money house is always more business to be lost, currently the stock breaks course. However, the head is not at all dissatisfied.
The Trend, and the current Figures do not speak for Deutsche Bank. Nevertheless, since April, acting chief Executive, Christian Sewing, spoke of a “milestone”. Because the Bank has costs under control and have the capital to be able to re-grow: “We are well on the way to complete the total year 2018, with a profit – for the first Time in 2014.”
By the end of September, the Bank scored 1.6 billion euros in pre-tax profit, a billion less than a year earlier. After taxes of 750 million euros to 1.7 billion euros in the previous year. In the third quarter alone, the profit after tax slumped by two thirds to EUR 229 million, but analysts had expected a worse result.
However, in recent years, the Bank had been destroyed by hail is usually a bad result in the final quarter of the year, the balance sheet. To the extent that he wanted to make it this year, in no case, said Sewing.
Christian Sewing, chief Executive Chairman of Deutsche Bank, is confident, however, in view of the quarterly results.
At least when you Terminate, the Bank is making progress
The Bank comes at the cost of removal, in the third quarter, spending fell by one percent to 5.5 billion euros. For the current year Sewing had promised to do not want more than 23 billion euros to spend – not a very ambitious target.. A further one billion Euro you want to save in the coming year, said chief financial officer James von Moltke.
In addition, the prefix comes removal: net 700 employees left between July and September, the money house until the end of the year 93,000 employees should be engaged. At the end of September, the number of full-time lay still in 94.717. By the end of 2020 it will be less than 90,000. for refurbishment and spot removal, but will occur with an estimated total of 600 million Euro less costs than expected.
More income and less business?
The cost of the Bank succeeded to reduce gradually, recognizes Markus Riesselmann, Analyst of Independent Research. “The Achilles’ heel of the German banking income: The cost reduction is not enough to compensate for the yield loss.” Because the total revenue of Germany’s largest money house fell between July and September compared to the previous year by nine percent to nearly 6.2 billion Euro.
This is due to the market environment. An example of the bond trade is: Since the Deutsche Bank is still an important dealer, but the income fell by 15 percent compared to the third quarter of the year 2017, because the fluctuations were so large, the banks could not earn so much. But others, like the British Barclay’s Bank had a run-in nevertheless, in this area, a significant better gains, says an Analyst note issued on Friday.
Deutsche Bank pulls back from Parts of their business in America. “How do you want to increase in the future, the income, if it has less employees and less business, is to me still a mystery,” says Riesselmann. Also in the transaction banking, which handles the payment transactions, it is not round.
Doubts about the strategy
“The Numbers speak for themselves,” says Dieter Hein disappointed, Analyst of fair search. The development of the first half of the year have continued in the third quarter. The investment Bank may devour 70 percent of the equity capital, in control, but only a third of the profit. He also pointed to the good economic environment, which has enabled the Bank to halve the risk provisions for bad loans: “What are the German Bank, if this environment deteriorate?”
The Bank’s strategy was wrong, the financial markets saw so says Hein and refers to the equity capital: The Bank has a total of 63 billion euros of equity. In the stock market, but yesterday she was just under 19 billion euros in value. With international competitors, Deutsche Bank could no longer compete.