Deutsche Bank says big-bang restructuring on track

Deutsche Bank’s net profits reached €401 million on the back of €6.6 billion in revenue. (AFP)
Updated 25 July 2018

Deutsche Bank says big-bang restructuring on track

  • Analysts surveyed by data company Factset had earlier forecast profits of around €120 million
  • It finished integrating of subsidiary Postbank into its retail banking division in May

FRANKFURT: Germany’s biggest lender Deutsche Bank said Wednesday a major restructuring under its new chief executive was in full swing, as it confirmed second-quarter profits that beat analysts’ previous expectations.
Net profits reached €401 million ($468 million) on the back of €6.6 billion in revenue, in line with preliminary figures the lender released earlier this month.
Analysts surveyed by data company Factset had earlier forecast profits of around €120 million.
But the result was still 14 percent lower than last year’s second-quarter earnings of €466 million.
“We accelerated the reshaping of our bank significantly and proved the resilience of our global business” between April and June, said CEO Christian Sewing, who took over from crisis firefighter John Cryan in April with promises of a far-reaching shakeup.
Deutsche highlighted some €239 million in costs for restructuring and employee severance — twice as much as the same quarter last year — as around 1,700 workers left.
It added that it was “on track” to slash another 1,500 from its total headcount to dip below 93,000 by the end of the year, with a further ambition to shrink “well below” 90,000 by the end of 2019.
Meanwhile it finished integrating of subsidiary Postbank into its retail banking division in May.
And in its investment banking division, Deutsche reported “substantial” reductions in “leveraged” — or borrowing-fueled — holdings of stocks and bonds, accounting for most of an €85-billion reduction in such exposures across the bank.
There was slower progress on cutting costs, which fell 1.0 percent to €5.6 billion in adjusted terms in the second quarter.
But executives said they remained committed to reducing outlays from last year’s €23.8 billion to €23 billion in 2018.


China suspends planned tariffs on some US goods

Updated 15 December 2019

China suspends planned tariffs on some US goods

  • Chinese tariffs were supposed to target goods ranging from corn and wheat to vehicles and auto parts
  • Beijing agreed to import at least $200 billion in additional US goods and services over the next 2 years

SHANGHAI: China has suspended additional tariffs on some US goods that were meant to be implemented on Dec. 15, the State Council’s customs tariff commission said on Sunday, after the world’s two largest economies agreed a “phase one” trade deal on Friday.
The deal, rumors and leaks over which have gyrated world markets for months, reduces some US tariffs in exchange for what US officials said would be a big jump in Chinese purchases of American farm products and other goods.
China’s retaliatory tariffs, which were due to take effect on Dec. 15, were meant to target goods ranging from corn and wheat to US made vehicles and auto parts.
Other Chinese tariffs that had already been implemented on US goods would be left in place, the commission said in a statement issued on the websites of government departments including China’s finance ministry. “China hopes, on the basis of equality and mutual respect, to work with the United States, to properly resolve each other’s core concerns and promote the stable development of US-China economic and trade relations,” it added.
Beijing has agreed to import at least $200 billion in additional US goods and services over the next two years on top of the amount it purchased in 2017, the top US trade negotiator said Friday.
A statement issued by the United States Trade Representative also on Friday said the United States would leave in place 25% tariffs on $250 billion worth of Chinese goods.