Deutsche Bank beats forecasts as Q3 profit more than doubles

FRANKFURT AM MAIN

Germany’s biggest lender Deutsche Bank reported a third-quarter net profit more than double 2016’s figure Thursday, as it continues to battle through restructuring and Europe-wide headwinds.

The bank booked net profits attributable to shareholders of 647 million euros ($765 million) between July and September, 153 percent higher than the same period last year and better than forecast by analysts surveyed by Factset.

Operating profit increased 51 percent, to 933 million euros, but revenue fell 7.0 percent to 6.8 billion euros.

“The revenue environment remains challenging,” chief executive John Cryan said, while adding that “we have made significant progress” on restructuring plans aimed at streamlining the bank.

Cryan took the helm in 2015 to right Deutsche after years of economic crisis, low interest rates in its European home region and thousands of high-profile legal cases targeting the lender.

While most of the biggest cases have been cleared aside, a reminder of the remaining burden came late Wednesday, as the bank agreed with 44 US states and the District of Columbia to pay $220 million Oct. 25 over the Libor interest rate fixing scandal.

Looking to the bank’s different divisions, corporate and investment banking revenues were down 23 percent in the third quarter as Deutsche complained of “muted client activity and low volatility.”

The private and commercial bank reported revenues up by 3.0 percent, while the asset management unit’s results were stable compared with the same period last year.

Deutsche offered no forecast for its full-year performance.