Deutsche Bank Results to Top Forecasts -- WSJ
July 17 2018 - 3:02AM
Dow Jones News
By Anthony Shevlin
This article is being republished as part of our daily
reproduction of WSJ.com articles that also appeared in the U.S.
print edition of The Wall Street Journal (July 17, 2018).
Deutsche Bank AG on Monday said second-quarter profit and
revenue would come in considerably above analysts' forecasts, a
boost 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 9% in response to the
unscheduled announcement, required under German regulations because
the figures were so different to forecasts. Deutsche Bank will
report full second-quarter results on July 25.
The better-than-expected figures, which the bank attributed to
cost cutting, come as Chief Executive Christian Sewing tries to
revive the German lender'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 17, 2018 02:47 ET (06:47 GMT)
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