Deutsche Bank suffers heavy third quarter loss

Deutsche Bank suffers heavy third quarter loss
Chief executive Christian Sewing highlighted that the so-called “core bank” of four businesses Deutsche plans to maintain into the future was profitable. (File/AFP)
Updated 30 October 2019

Deutsche Bank suffers heavy third quarter loss

Deutsche Bank suffers heavy third quarter loss
  • The group lost 859 million euros ($954 million) in July-September, down from a profit of 211 million last year
  • The bank also saw a pre-tax loss of 687 million euros, compared with a gain of 506 million in 2018

Frankfurt: Germany’s biggest lender Deutsche Bank reported Wednesday a heavy net loss in the third quarter, as the costs of its latest phase of restructuring weigh on the bottom line.

The group lost 859 million euros ($954 million) in July-September, down from a profit of 211 million last year.

The bank also saw a pre-tax loss of 687 million euros, compared with a gain of 506 million in 2018.

And revenues fell 15 percent, to 5.3 billion.

But chief executive Christian Sewing highlighted that the so-called “core bank” of four businesses Deutsche plans to maintain into the future was profitable.

Among those units, the former flagship investment bank remained the lender’s problem child, with falling revenues and profits as it closed share trading activities.

Elsewhere the retail bank and asset management unit also reported falling revenues, although the corporate bank provided a bright spot of growth.

Costs grew four percent, including outlays of some 234 million euros linked to departing staff, but fell back four percent when counting out such one-off effects.

By the end of September, Deutsche had 89,958 staff, down 1,000 compared with June’s figure, when it announced 18,000 — around one-fifth of workers — would leave.

Weighed down by both the restructuring and business headwinds, Deutsche’s net losses in the year to September mounted to 3.9 billion euros.


Goldman Sachs nudges U.S. growth forecast higher on Biden stimulus plan

Goldman Sachs nudges U.S. growth forecast higher on Biden stimulus plan
Updated 17 January 2021

Goldman Sachs nudges U.S. growth forecast higher on Biden stimulus plan

Goldman Sachs nudges U.S. growth forecast higher on Biden stimulus plan
  • The bank expects economic growth of 6.6% in 2021
  • Biden outlined a $1.9 trillion stimulus package proposal on Thursday

Analysts at Goldman Sachs Group raised their U.S. growth forecast for the second time this month on expectations that President-elect Joe Biden’s fiscal stimulus plan will hasten the economy’s recovery from the COVID-19 pandemic.
The bank expects economic growth of 6.6% in 2021, compared with a previous forecast of 6.4%, according to a report published on Saturday. It also raised forecasts for how much stimulus the new administration will be able to push through in the near-term, to $1.1 trillion from $750 billion.
Biden outlined a $1.9 trillion stimulus package proposal on Thursday, saying bold investment was needed to jump-start the economy and accelerate the distribution of vaccines to bring the coronavirus under control.
“Larger boosts to disposable income and government spending imply stronger growth later in the year,” the bank’s analysts wrote.