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Deutsche Bank Posts First Profit in Months
Deutsche Bank Posts First Profit in Months

Deutsche Bank Posts First Profit in Months

Deutsche Bank Posts First Profit in Months

Germany’s biggest commercial lender has posted an unexpected profit in the third quarter as it struggles to avoid a multi-billion dollar fine in the US and amid nagging doubts about its capital reserves.
Deutsche Bank logged a net profit of €278 million ($303 million) between July and September, after posting a record loss of €6 billion ($6.5 billion) in the same period last year, DW reported.
The profit figure, revealed on Thursday, strongly surprised analysts, who had expected another loss of about €949 billion ($1 trillion) in a poll for Factset and given the lender’s ongoing crisis.
Quarterly revenues at Germany’s biggest bank also increased to €7.5 billion ($8 billion)—just slightly higher from the third quarter 2015.
Deutsche’s chief executive John Cryan said in a statement that the bank was making “good progress” in restructuring its business.
Deutsche Bank is fighting a $14 billion demand from the US Department of Justice over the misselling of mortgage-backed securities in the run-up to the 2008/2009 financial crisis.
This and a series of other lawsuits threatening to cost the bank dearly has forced Deutsche Bank to set aside more money for legal costs in the quarter, with litigation reserves rising to €5.9 billion ($6.4 billion.)
“Discussions with the DoJ to resolve its investigation of Deutsche Bank’s pre-financial crisis RMBS business are ongoing,” Deutsche Bank said in a presentation. It gave no information on when it expects to settle the case, but hopes to get away with a significantly reduced fine of around €5.4 billion ($5.9 billion), according to sources familiar with the matter.

 

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