Deutsche Bank suffers $3.5 billion loss on road to reinvention

Credit: Reuters Studio
Published on July 24, 2019 - Duration: 01:32s

Deutsche Bank suffers $3.5 billion loss on road to reinvention

Deutsche Bank reported a bigger than forecast quarterly loss of 3.15 billion euros ($3.5 billion), underlining the challenges it faces as it attempts to turn around its struggling business.

David Pollard reports.

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Deutsche Bank suffers $3.5 billion loss on road to reinvention

New York, Hong Kong, London ... Deutsche Bank made global headlines by announcing 18,000 job cuts earlier this month As part of a huge overhaul of its investment bank.

What wasn't known was the scale of the lender's losses.

3.15 billion euros in Q2 - three and half billion dollars - is bigger than even Deutsche itself flagged at the time.

Equities sales and trading - a division which is to be scrapped - is down 32 per cent.

Its cash-cow bond trading revenues dropped 4 per cent.

Overall net revenues are down 6 per cent.

Under CEO Christian Sewing, an 8 billion dollar overhaul aims to move the bank on..... From a a failed merger attempt with Commerzbank And recent past of scandal, losses .... And regulatory fines - including 7.2 billion dollars in the U.S. in 2017 for its role in the mortgage market crisis - Along with slashing its investment bank, Deutsche will also set up a so-called "bad bank" to wind down a possible 288 billion euros of unwanted assets - a process insiders say could take years.

Much of the cost of the restructuring is already - quote - "digested", Sewing says.

But the bank now expects 2019 revenue to be lower than in 2018 And a sharp drop on Thursday in a share price already down over 75% in four years may leave a sour taste for investors.

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