DBPBC (DBP): Deutsche Bank reports second quarter 2016 pre-tax profit of 408 million euros and net income of 20 million euros - raport 3
UNI - EN REPORT No3/2016
Deutsche Bank reports second quarter 2016 pre-tax profit of 408 million euros and net income of 20 million euros
Below you will find key developments within Deutsche Bank. Full second quarter report attached.
• 20% lower revenues year-on-year reflecting challenging environment and strategic decisions
o Revenues, excluding NCOU and Hua Xia Bank, down 12%
• 14% lower noninterest expenses reflect lower litigation expenses and compensation costs
• Pre-tax profit of 408 million euros, down 67%, after goodwill impairment charge of 285 million euros, restructuring and severance charges of 207 million euros, and litigation charges of 120 million euros
• Sustained financial strength
o Fully loaded CET1 ratio improved slightly to 10.8%
o Gain of ~40 basis points to CET1 ratio from Hua Xia disposal anticipated in second half 2016
o Liquidity reserves of ~220 billion euros
o Credit and market risk at very low levels
• Significant progress on strategy implementation
o First-phase restructuring in Germany agreed, involving ~3,000 positions
o Formation of Intermediate Holding Company in US
o Further de-risking of non-core assets
o Operational separability of Postbank completed
o Sustained investment in controls and infrastructure
• All business divisions profitable
o Global Markets: rates, FX comparable with strong prior year quarter, expect to remain No 4 in debt sales and trading
o Corporate & Investment Banking: revenues in Transaction Banking stable year-on-year, No 2 in debt origination in Europe
o Private, Wealth & Commercial Clients: 2,000 new commercial banking clients in Germany, over 10,000 new clients in Private & Commercial Clients International, consumer finance growth year-on-year
o Deutsche Asset Management: substantial profitability in a high return-on-equity business
