Economic news

Deutsche Bank Q2 profit falls 27% on investment banking slump

2023.07.26 01:53


© Reuters. FILE PHOTO-Deutsche Bank logo is seen in this illustration taken March 12, 2023. REUTERS/Dado Ruvic/Illustration/File Photo

FRANKFURT (Reuters) -Deutsche Bank posted on Wednesday a 27% fall in second-quarter profit as investment banking revenues slumped, but the drop was lower than expected as higher interest rates fuelled gains at the retail division.

Net profit attributable to shareholders was 763 million euros ($843.04 million), down from 1.046 billion euros a year earlier but better than analyst expectations for profit of around 571 million euros.

The German lender downgraded its outlook for the investment bank, saying it now expected revenues to be slightly lower in 2023, compared to a previous forecast for flat revenue.

Deutsche also faced a rise in non-operating costs in the quarter, partly as a result of higher litigation and severance charges.

The figures underscore broader trends in global banking, with investment banks struggling as deals are paused, while higher interest rates are a boon to other divisions.

Deutsche’s retail division became its biggest revenue generator during the quarter. Analysts expect the retail unit will also overtake the investment bank as the main revenue driver for the full year, overturning the investment bank’s pole position over the previous three years.

Despite the profit drop, the earnings marked the bank’s 12th consecutive quarter of profit, a noteable streak in the black after years of losses.

($1 = 0.9051 euros)

Source link

Related Articles

Back to top button
bitcoin
Bitcoin (BTC) $ 84,300.59 0.06%
ethereum
Ethereum (ETH) $ 1,942.76 0.99%
tether
Tether (USDT) $ 1.00 0.00%
xrp
XRP (XRP) $ 2.41 2.80%
bnb
BNB (BNB) $ 617.57 5.35%
solana
Solana (SOL) $ 135.59 1.44%
usd-coin
USDC (USDC) $ 1.00 0.00%
cardano
Cardano (ADA) $ 0.754087 2.60%
dogecoin
Dogecoin (DOGE) $ 0.176451 3.45%
tron
TRON (TRX) $ 0.22184 0.16%
staked-ether
Lido Staked Ether (STETH) $ 1,942.27 1.26%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 84,218.56 0.10%
pi-network
Pi Network (PI) $ 1.45 3.89%
chainlink
Chainlink (LINK) $ 14.10 2.16%
leo-token
LEO Token (LEO) $ 9.71 0.70%
the-open-network
Toncoin (TON) $ 3.44 17.25%
stellar
Stellar (XLM) $ 0.275957 0.39%
wrapped-steth
Wrapped stETH (WSTETH) $ 2,327.30 1.09%
usds
USDS (USDS) $ 1.00 0.02%
hedera-hashgraph
Hedera (HBAR) $ 0.194077 1.83%
avalanche-2
Avalanche (AVAX) $ 19.16 2.14%
shiba-inu
Shiba Inu (SHIB) $ 0.000013 0.86%
sui
Sui (SUI) $ 2.37 1.93%
litecoin
Litecoin (LTC) $ 93.12 1.64%
bitcoin-cash
Bitcoin Cash (BCH) $ 345.21 5.56%
polkadot
Polkadot (DOT) $ 4.38 4.31%
mantra-dao
MANTRA (OM) $ 6.61 5.60%
weth
WETH (WETH) $ 1,942.87 1.04%
ethena-usde
Ethena USDe (USDE) $ 0.999866 0.05%
bitget-token
Bitget Token (BGB) $ 4.46 0.92%
binance-bridged-usdt-bnb-smart-chain
Binance Bridged USDT (BNB Smart Chain) (BSC-USD) $ 0.999957 0.06%
hyperliquid
Hyperliquid (HYPE) $ 14.41 3.24%
whitebit
WhiteBIT Coin (WBT) $ 28.92 1.25%
wrapped-eeth
Wrapped eETH (WEETH) $ 2,064.02 1.01%
monero
Monero (XMR) $ 211.88 0.91%
uniswap
Uniswap (UNI) $ 6.24 2.92%
susds
sUSDS (SUSDS) $ 1.04 0.04%
aptos
Aptos (APT) $ 5.40 3.72%
dai
Dai (DAI) $ 0.999855 0.01%
near
NEAR Protocol (NEAR) $ 2.68 2.07%
pepe
Pepe (PEPE) $ 0.000007 3.03%
internet-computer
Internet Computer (ICP) $ 5.85 3.66%
okb
OKB (OKB) $ 46.55 0.90%
ondo-finance
Ondo (ONDO) $ 0.884532 2.20%
ethereum-classic
Ethereum Classic (ETC) $ 18.01 0.03%
gatechain-token
Gate (GT) $ 21.74 1.73%
aave
Aave (AAVE) $ 174.35 0.72%
coinbase-wrapped-btc
Coinbase Wrapped BTC (CBBTC) $ 84,278.58 0.10%
mantle
Mantle (MNT) $ 0.754863 3.15%
official-trump
Official Trump (TRUMP) $ 12.22 3.03%