Long-troubled Deutsche Bank says profits unexpectedly high
Germany's biggest bank, Deutsche Bank, said Monday that its earnings will be considerably higher than expected in the second quarter, a fact that it said underlines the "resilience" of the company after a period of trouble.
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The Frankfurt-based bank said it expects net profit of about 400 million euros ($467 million) for the April-June period.
The company was forced by regulatory rules to release the brief preliminary earnings statement ahead of the full report, which is July 25, because the results are far above analysts' average forecast. For net income, that was 159 million euros.
The bank has struggled to return to profit after three straight full-year losses. It has suffered from high costs along with heavy fines and penalties for past misconduct.
The latest figures appear to be good news for new CEO Christian Sewing, who took over in April after predecessor John Cryan was shown the door. The company said "management believes that these results demonstrate the resilience of the franchise."
Deutsche Bank said it expects non-interest expenses of about 5.8 billion for the second quarter, below analysts' estimate of 6 billion euros, and added that its restructuring efforts "progressed rapidly" during the period. It said the company's workforce declined by about 1,700 to just over 95,400.
Investors rewarded the news by pushing Deutsche Bank's shares up 7 percent to 10.33 euros in Frankfurt trading.
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