The restructuring of the bank to “proceed along the way”, reads the note to Deutsche Bank that accompanies the results of the third quarter. Results, if compared with those of the same period of last year, they are amazing. The German bank is, in fact, returned to profit in the third quarter to 278 million compared to a loss of 6 billion in the September 2015, which, however, was determined by heavy write-downs of assets, but, above all, doing better than estimates, which provided for a loss between 600 and 950 million.
On the occasion of the accounts, Deutsche Bank he also provided an update on the issue of ongoing negotiations with the Justice Department of the United States to close the case of the subprime mortgages. The bank has set aside more 501 million to cover the costs of the litigation and emphasized the “hard work” going to close “as soon as possible,” a problem that has weighed heavily on the trend of equity prices in the last week.
” The third quarter of 2015 was marked by massive write-downs of assets in the investment-banking and other assets, and has represented the starting point of a broad restructuring plan by the new chief executive officer John Cryan. In the period July-September, the German bank has also recorded a growth in revenues of 7.5 billion, and profits before taxes at 619 million, with an improvement of capital ratios: CET 1 ratio is in fact increased to 11.1% compared to 10.8% in the second quarter of 2016.
In detail, the revenue of global markets increased by 10% to 2.6 billion, while that relative to corporate & investment banking is down
1% – to 2 billion, with provisions for credit risks rose by 87 million to 176 because of the industrial segment oil and gas. The revenues of Private, wealth & commercial clients increased 20% to eur 1.7 billion (+5%) and provisions to risk to 57 million) and those of the
asset management (asset management) fell by 8% to 628 million. The division Postbank has also registered a decline in revenues of 7% to 779 million with provisions for loans at risk a 30% decrease to 45 million.
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