Deutsche Bank has posted a net income of EUR236m for the first quarter of 2016, a decrease of 57.8% from EUR559m a year ago, as it undergoes a major restructuring of its business.
For the quarter ending 31 March 2016, the bank’s pre-tax income dropped 60.8% to EUR579m from EUR1.48bn in the prior year.
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Net revenues declined 22.2% to EUR8.07bn from EUR10.37bn in the first quarter of 2015.
Noninterest expenses dropped 17.2% to EUR7.18bn from EUR8.68bn a year earlier, mainly driven by a reduction of EUR1.4bn in litigation expenses. Provision for credit losses surged 39.4% year-on-year to EUR304m.
Deutsche Bank co-CEO John Cryan said: "Financial markets were challenging during the first quarter, largely reflecting concerns about the outlook for the global economy. This uncertainty led to a decline in client activity in the capital markets, and our revenues fell from the prior year, most notably in our trading and corporate finance businesses.
"Despite this, we made progress on a number of fronts including the modernisation of our IT platforms; the operational separation of Deutsche Postbank, which is almost complete; the continued disposal of non-core assets; and the ongoing closure or downsizing of our operations in selected countries. In addition, we markedly improved the process through which we adopt new clients."
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