Deutsche Bank Profit Plunges

Deutsche Bank AG said Wednesday that its second-quarter net income fell 98% to €20 million ($21.99 million).

The German lender said second-quarter net revenue was €7.4 billion, a 20% decline from the same period a year earlier.

Deutsche Bank's shares have fallen 43% this year, compared with the 27% decline of the Stoxx Europe 600 banks index. Investors have sold European bank shares since the U.K. voted June 23 to leave the European Union.

Deutsche Bank has been hit harder than most. The Frankfurt-based bank is cutting costs and clients and trying to satisfy new, more-stringent capital requirements over the next three years. Its turnaround strategy has eaten into trading and investment-banking revenue, and investors' concerns about the adequacy of its capital cushion have persisted.

The bank also has been trying to settle regulatory investigations expected to result in big fines, another uncertainty for investors.

In July 2015, John Cryan, a former banker and finance chief of UBS Group AG, took over as co-chief executive of Deutsche Bank, replacing Jü rgen Fitschen and Anshu Jain. Mr. Fitschen stayed on as co-CEO until May and remains an adviser. Mr. Jain left last year. Mr. Cryan is now sole CEO.

Write to Jenny Strasburg at [e-mail]

(END) Dow Jones Newswires

July 27, 2016 02:05 ET (06:05 GMT)

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