Deutsche Bank posts loss amid restructuring and coronavirus crisis
Bank increased funds it set aside to protect potential loan losses
German lender Deutsche Bank on Wednesday posted a loss in the second quarter as the bank undergoes a costly overhaul amid the coronavirus crisis.
The quarterly snapshot of the company’s performance showed improvement at the investment bank but it also reflected an increase in funds set aside to protect for potential loan losses as the pandemic takes its toll.
The bank also provided a slightly more optimistic revenue outlook for the year, with revenues now expected to be “essentially flat” rather than the “slightly lower” amount previously flagged.
The bank already said last week that its results would be slightly better than analysts had expected, and the net loss attributable to shareholders of €77 million in the quarter was narrower than the €3.3 billion loss a year earlier.
Deutsche has posted a string of annual losses over the past five years. Analysts expect a full year loss in 2020, and bank executives have warned that it will be difficult to repeat the bank’s performance in the first six months of this year in the second half.– Reuters