Deutsche Bank Shares Fall After Overhaul Costs Hit 2Q Results

   By Pietro Lombardi 
 

Deutsche Bank AG (DBK.XE) shares are under pressure after a larger-than-expected restructuring charge dragged the bank to a 3.15 billion-euro ($3.51 billion) loss in the second quarter.

The German bank said Wednesday that it booked a EUR3.4 billion charge related to the deep overhaul it announced in July. Under the plan, Deutsche will exit its global-equities sales and trading business and cut 18,000 jobs.

The charge is higher than the figure of roughly EUR3 billion that the bank had previously guided for.

The loss compares with a profit of EUR401 million a year earlier.

Without the charge, the bank would have posted a net profit of EUR231 million, it said.

"The restructuring is a big and expensive gamble for the bank but one that many have thought necessary for some time," Oanda said.

Deutsche shares were trading 5.3% lower at 0736 GMT.

Revenue declined 6% to EUR6.20 billion, with corporate and investment bank revenue down 18% on year.

"Excluding transformation charges, the bank would be profitable and in our more stable businesses revenues were flat or growing," Chief Executive Christian Sewing said.

The German bank expects revenue for the year to fall compared with last year. "This decline is mainly due to our decision to exit substantially all of our equities sales and trading business," it said.

Write to Pietro Lombardi at [e-mail]

(END) Dow Jones Newswires

July 24, 2019 03:59 ET (07:59 GMT)

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