Deutsche Bank’s retail banking focused private and commercial business unit (P&CB) has posted a 23% fall in profit before tax to €262m ($306m) for the second quarter.
The cost-income ratio for the unit remains eye-wateringly high at 86%, up 2 percentage points on the prior quarter and flat year-on-year, driven by € 65m of German merger related investment spend.
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At group level, the metric is even worse with a cost-income ratio of 90.2% up from 86.3% a year ago.
Deutsche Bank Q2 total loans for the P&CB unit are flat year-on-year at €268m but deposits rose by 4% to €328m.
Deutsche Bank Q2: branch network inches down
Deutsche Bank ended the first half with a group wide branch network of 2,346 outlets down a net 79 from a year ago. Deutsche Bank’s German branch network of 1.504 units is down by a net 66 from 1,570 a year ago.
Deutsche Bank’s P&CB unit posted net revenue of €2.5bn for the quarter, down by 1% from the prior year period.
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By GlobalDataCEO Christian Sewing, appointed in April, is on a mission to slash costs and aims to axe 7,000 jobs from its current 95,000 workforce by the end of 2019.
He said: “The last three months have given me confidence. We’ve made a start and we’re already seeing the first signs of change in our results.”
At group level, Deutsche Bank reported net income of €401m, down by 14% from the year ago quarter.
