Deutsche Bank has reported net income of €20m for the second quarter of 2016, down 98% from €818m in the year-ago quarter.
The bank's quarterly pre-tax income was €408m, a slump of 67% from €1.23bn a year earlier.
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Net revenues dipped 20% to €7.38bn from €9.17bn during the same quarter in 2015. The bank said that the fall in revenue was driven by a challenging market environment, macro-economic uncertainties including the European Union referendum in the UK, a continued low interest rate environment in Europe and the implementation of strategic decisions.
Noninterest expenses declined 14% to €6.72bn from €7.79bn in the prior year. The fall mainly reflected litigation expenses that were €1.1bn lower compared to the previous year, the bank said.
Provision for credit losses surged 72% to €259m from €151m a year ago, mainly reflecting higher provisions in the shipping and the metals and mining sectors.
Deutsche Bank CEO John Cryan said: “While our results show that we are undergoing a sustained restructuring, we are satisfied with the progress we are making.”
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By GlobalData“We have continued to de-risk our balance sheet, to invest in our processes and to modernise our infrastructure. However, if the current weak economic environment persists, we will need to be yet more ambitious in the timing and intensity of our restructuring.”
