Struggling Deutsche Bank posts loss amid restructuring costs
FRANKFURT, Germany (AP) — Deutsche Bank lost 832 million euros ($925 million) in the third quarter as it suffered heavy losses from its drawn-out restructuring aimed at reducing risks and costs.
The bank said Wednesday it lost 1 billion euros in the unit devoted to asset disposals and saw 315 million euros in restructuring costs from its core banking businesses.
Revenue fell 15% to 5.3 billion euros, largely because of the bank abandoning its stock-trading business as it pulled back from competing with Wall Street firms to focus on its core European market. Deutsche Bank also struggled with low interest rates, which can constrict earnings on lending.
CEO Christian Sewing said the bank was on track with cost cuts and that the core businesses were fundamentally profitable, with more client money flowing to its asset management unit.
Deutsche Bank is engaged in a years-long effort to cuts costs and exit riskier or less profitable lines of business. Sewing has accelerated cost cutting since taking over in April 2018.
Deutsche Bank shares fell 6.2% on the news in morning trading in Europe.