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Deutsche Bank increases second-quarter profit, but faces cost pressures

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A Deutsche Bank branch in Frankfurt, Germany, in this photo on February 4, 2021. afp_tickers

This content was published on Jul 27, 2022 – 05:06

(AFP)

Deutsche Bank, the German bank, announced, on Wednesday, that its net profit increased by 51% in the second quarter, to 1,050 million euros (more than 1,060 million dollars), the best since 2011.

Global revenue, at 6.7 billion euros, was up 7%, driven by corporate customers, according to a press release. Taxable income was 1.55 billion euros, in line with analyst expectations.

Income from corporate banking, which was up 26% year over year, benefited from higher interest rates and commissions.

In the investment banking division, sales increased 11% year over year thanks to bond and currency trading amid high market volatility.

However, due to ongoing litigation and the war in Ukraine, the foundation now expects a cost ratio of 70-75% for this year, compared to the 70% initially projected.

“We are facing cost pressures in a more challenging than anticipated environment,” Chief Financial Officer James von Moltke said in a statement.

In the US, the bank faces an investigation into its employees’ use of personal devices for company communications, with the risk of a fine if found guilty.

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