Deutsche Bank Says Profit Will Beat Forecasts -- Update
July 16 2018 - 5:48AM
Dow Jones News
By Anthony Shevlin
Deutsche Bank AG on Monday said second-quarter profit and
revenue would come in considerably above analysts' forecasts,
welcome news for the German bank's new chief executive as he seeks
to revive the lender's fortunes.
The bank said it expects net income of around EUR400 million
($663.4 million) for the period, compared with a consensus estimate
of EUR159 million, and pretax profit of about EUR700 million versus
expectations of EUR321 million. It expects revenue of EUR6.6
billion against analysts' forecasts of EUR6.4 billion.
Shares in the bank rose more than 6% in response to the
unscheduled announcement. Deutsche Bank will report full
second-quarter results on July 25.
The better-than-expected figures come as Chief Executive
Christian Sewing tries to revive the German bank's fortunes after
three consecutive full-year losses, market-share declines and
strategic upheaval.
However, while the projected figures are better than analysts
had expected, they are similar to last year's levels.
Second-quarter net income last year came in at EUR466 million,
while revenue was EUR6.6 billion.
Deutsche Bank's announcement Monday shed some light on the
bank's efforts to reduce costs and in turn boost profit.
The lender said noninterest expenses are expected to be around
EUR5.8 billion compared with consensus of EUR6 billion. It said
restructuring actions have progressed rapidly in the second quarter
with head count down by approximately 1,700 full-time equivalents
to slightly above 95,400.
Deutsche Bank also said its Common Equity Tier 1 capital ratio,
a measure of a bank's capital strength, is expected to be around
13.6% compared with the average consensus estimate of 13.3%.
(END) Dow Jones Newswires
July 16, 2018 05:33 ET (09:33 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
Deutsche Bank Aktiengese... (NYSE:DB)
Historical Stock Chart
From Mar 2024 to Apr 2024
Deutsche Bank Aktiengese... (NYSE:DB)
Historical Stock Chart
From Apr 2023 to Apr 2024