Germany’s biggest bank posted a loss of nearly $3.5 billion in the second quarter, slammed by the cost of a radical overhaul aimed at returning the company to profit.
Deutsche Bank (DB) said Wednesday that it took a charge of €3.4 billion ($3.8 billion) for the three months ending in June, leading to a net loss of €3.1 billion ($3.46 billion).
The performance was even worse than the bank had telegraphed: It said on July 7 that costs related to the overhaul would push it to a net loss of €2.8 billion ($3.1 billion) for the second quarter.
Shares dropped about 5% in Frankfurt on the news.
Without the restructuring cost, Deutsche Bank said it would have reported a net profit of €231 million ($257.4 million), down 42% on the same period last year.
“Excluding transformation charges the bank would be profitable and in our more stable businesses revenues were flat or growing,” CEO Christian Sewing said in a statement……..read more
Source: CNN
