Deutsche Bank reported a first quarter net profit of €66 million ($71.62
million) on Wednesday, significantly below the €201 million ($219
million) net profit it recorded in the first quarter of 2019. The bank
has put aside €260 million ($282 million) to cope with potential loan
losses that may result from the coronavirus pandemic.The bank's earnings
results follow a pre-release on Sunday where it confirmed its net
income figures, and that it beat analysts' estimates. Visit Business
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Deutsche Bank has put aside €260 million ($282 million) to cover any
potential loan losses from the coronavirus pandemic as the bank posted
67% lower net profit than last year in its quarterly earnings on
Wednesday. Despite the sharp drop in profits, the German bank beat Wall
Street Analysts' expectations. Deutsche Bank reported a net profit of
€66 million ($71.62 million) on Wednesday, significantly below the €201m
($219 million) net profit it recorded in the first quarter of last
year. As well as a 67% fall in net profits, the German lender also
recorded a loss of $43 million attributable to shareholders.
Here are some key metrics versus Bloomberg estimates:Net income: €66
million versus €2.68 million ($2.82 million) expected.Revenue: €6.4
billion versus €5.68 billion ($6.16 billion) expected.Christian Sewing,
chief executive of Deutsche Bank said: “In the current crisis, we have
shown robust numbers and demonstrated strong performance in support of
our clients across all core businesses.Sewing added: ”Conservative
balance sheet management enables us to navigate the current environment
from a position of strength as the leading bank in Europe's strongest
economy.Provision for credit losses were €506 million, and the German
bank earmarked €260 million ($282 million) to deal with potential loan
losses that may result from the coronavirus pandemic.
Provision for credit losses taken in the quarter increased allowance
for loan losses to €4.3 billion. Read more: Brad Cornell has been
teaching finance at UCLA for almost 40 years. He shares the precise way
he calculates the true value of the S&P 500 — and says investors
need to 'be careful out there.'The bank's earnings follows a a surprise
pre-release statement on Sunday, where the German bank announced its
expectation that net profits would be €66 million ($72 million).
Deutsche Bank has had a challenging few years months including a
restructuring and steep losses. It announced last year it would be
cutting 18,000 jobs last year as part of a “radical transformation”
aimed at restoring consistent profitability and improving returns to its
shareholders.
Sewings' $8.3 billion restructuring plan transformation involves
cutting down the investment banking business and aims to cut total costs
by a quarter by 2022. Shares in Deutsche Bank rose 2% as of 3:50 a.m ET
at $6.85. Deutsche Bank's results came a day after Swiss banking giant
UBS reported a strong first-quarter with net profits rising 40% compared
to the same period last year, driven by high transaction volumes in the
midst of market volatility.if you want know more,
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