Deutsche Bank announced a loss of 832 million Euros

Market Trends - 31/10/2019


On Wednesday the popular Deutsche Bank stated that for the
third quarter the bank had a notable increase in losses due to the fact that it
missed market expectations. The drop came while a significant restructuring
plan remains a liability for the popular bank and that has negative effects on
the German lender. Deutsche Bank released a net loss of 832 million euros for
the third quarter of 2019.





According to efinitiv, experts and analysts were forecasting
a drop of 778 million euros, it had published a net profit of 229 million euros
in the third quarter last year, but also a decline of 3.15 billion euros in the
second quarter of 2019. The chief executive officer of Deutsche Bank, Christian
Sewing in a report said the following “Despite having launched the most comprehensive
restructuring of our bank in two decades, we delivered profits in our four core
businesses during the quarter and grew loans and assets under management,” and
continued “Transformation is fully underway with tangible progress on costs and
de-risking. A 13.4% CET1 ratio underlines our strength.”





At the beginning of 2019 Deutsche Bank published a
comprehensive restructuring program to restore its business. At the time,
Deutsche Bank, CEO Christian Sewing, stated that the lender would cut thousands
of jobs, stop its global equities business and go back to investment banking.
The bank plans to slash 18,000 jobs globally by 2022.





At the end of the third quarter of 2019, Deutsche Bank
announced that it had almost 90,000 employees.





Von Moltke explained when interviewed by CNBC that the job
cuts are “rolling through the company.” he continues “I wouldn’t expect (a) big
announcement of headcount reductions, but (a) steady execution of our plans.”





Shares of Deutsche Bank dropped by 2% in early European
trading hours.





Now it is expected that the increase in losses from the
popular bank may start affecting the DAX. The DaX-DEC19 is currently at
12905.00.


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