Deutsche Bank has reported a pre-tax profit of €408m and net income of €20m during the second quarter of 2016. Revenues were 20% lower year-on-year reflecting a challenging environment and strategic decisions, the bank said during the presentation of the 2Q2016 results on July 27.
Pre-tax profit was down 67% from €1.2bn in 2Q2015, after a goodwill impairment charge of €285m, restructuring and severance charges of €207m and litigation charges of €120m.
Revenues for the global markets business division stood at €2.4bn, 28% lower y-o-y. Sales and trading (equity) generated net revenues of €720m in the second quarter, a decrease of €319m, or 31%. Cash Equities revenues were lower, mainly driven by Europe and Asia reflecting lower client volumes while equity derivatives revenues decreased significantly driven by lower client activity and challenging market conditions, according to the bank.
During the first six months of the year sales and trading (equity) generated revenues of €1.5bn, down 32% (€677m) from the same period in 2015.
Corporate and investment banking (CIB) revenues were €1.9bn, down 12% y-o-y, due to challenging market conditions in corporate finance, which were partly counterbalanced by stable revenues in transaction banking, Deutsche said.
In wealth management (WM), revenues declined by 12% to €490m, reflecting lower performance and transaction fees driven by the more difficult market environment, including very low levels of equity capital markets activity in the US, while in asset management revenues were €706m, down 8% y-o-y, according to the bank.
While our results show that we are undergoing a sustained restructuring, we are satisfied with the progress we are making, stated John Cryan, CEO. "We have continued to de-risk our balance sheet, to invest in our processes and to modernise our infrastructure. However, if the current weak economic environment persists, we will need to be yet more ambitious in the timing and intensity of our restructuring."
Deutsche Bank issued 250 retail structured products across nine jurisdictions between January 1 and June 30, 2016, according to SRP data. In Belgium the bank distributed 26 products worth €207m while in the US, another of its core markets, Deutsche issued 100 products with a sales volume of US$555m during the first half of 2016.
The bank was also active as bond provider for a number of distributors including Garantum, KBL, Leonteq and Mariana.
Click the link to read the Deutsche Bank interim report June 30, 2016 and the financial summary.
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