The latest Deutsche Bank results show that the lender is still struggling to improve its balance sheet. The Deutsche bank reported a net profit of 229 million euros on Wednesday, up from a forecast of 149 million euros according to Reuters analysts’ poll. However, the performance of the third quarter of 2018 was 65% lower than that of the previous year.
Christian Sewing, president and CEO of Deutsche Bank, said in a statement: “With a pre-tax profit of € 506 million, this result marks a new phase in our journey to become a profitable bank in a sustainable way.”
Analysts were wondering which direction the biggest German lender will take since the new management team took office last April. The new CEO, Christian Sewing, comes from the commercial department of Deutsche Bank, which is why many wonder if the bank would focus more on trade and the domestic market.
“By the end of the quarter, management had completed the downsizing of the front office and the balance sheet in the second quarter, and the goal now is to generate growth and return, continually improving infrastructure and controls accounting to the statement from bank.
In commercial banking, sales in the third quarter decreased by 3% compared to the previous year, to 2.5 billion euros. In terms of assets under management, they increased €2 Billion to €694 Billion during the quarter as a result of changes in the markets and exchange rates.
Deutsche Bank shares fell 5% at the end of Wednesday’s session. Stocks have fallen about 41% since the beginning of the year.
As part of the restructuring plans of the team, the total number of employees will be reduced to 93,000 by this year end. Around 700 employees have been reduced in this quarter.