Deutsche Bank reports third quarter profits.
Net income led to net income of 182 million euros, with net revenue rising 13% to 5.9 billion euros.
This profit growth was far higher than analysts expecting during the period, which predicted a loss of 77 million euros. The German lender announced a net loss of 832 million euros in the same period last year.
The Christian Sewing Chief Executive Officer said: “In our fifth quarter
Transformation, we not only demonstrated continued cost discipline, but also demonstrated our ability to gain market share.
“We believe our more focused business model is rewarding and a large portion of our revenue growth is sustainable.
“The strength of our balance sheet and high quality risk management allow us to support our clients during difficult times and take advantage of new business opportunities,” he added.
Deutsche Bank’s shares have risen more than 15% so far this year, recovering from a decline during the coronavirus conflict in March.
Banks have been losing money for the past five years and are receiving a cost-cutting scheme by cutting jobs, withdrawing some companies and reducing costs.
CFO James von Moltke told CNBC: “We’re currently very focused on businesses that we can compete and win, and we know where our business, our clients and people are focused, where we’re competitive, so I think we’re seeing the benefits of that focus.”
The bank is currently in discussions to sell its IT service units to Tata Consulting Services (TCS). The results of the transaction are expected to be shared by the end of the year.
This week, major lenders have shared transaction updates with HSBC, with 36% profit slides and Santander posting third quarter profits.
