After-tax, the net profit for Deutsche Bank in Q2 2020 is €61m compared to a net loss of €3.1bn in Q2 2019 which was driven by a restructuring programme

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A Deutsche Bank office in Warsaw, Poland. (Credit: Deutsche Bank AG)

Deutsche Bank has reported a net profit before tax for the second quarter of 2020 of €158m, in contrast to a net loss before tax of €946m in the same quarter in 2019.

The bank said that its net profit in Q2 2020 was possible despite transformation-related effects of €280m and €124m of bank levy charges. Its provision for credit losses in the reported quarter was €761m, compared to €506m in Q2 2019.

After-tax, the German banking group’s net profit for Q2 2020 is €61m compared to a net loss of €3.1bn in Q2 2019 which was driven by a restructuring programme.

In the previous quarter, which is Q1 2020, the bank reported a net proft before tax of €66m.

Deutsche Bank also reported pre-tax profit of €364m for the first six months of this year compared to pre-tax loss of €654m in the same period last year. Net profit in H1 2020 came to €126m compared to a net loss of €2.9bn in the prior-year period, which was mainly because of the transformation-related effects.

The total net revenues of the German bank in Q2 2020 were €6.3bn compared to €6.2bn. For H1 2020, the total net revenues were €12.6bn compared to €12.5bn.

In the second quarter of 2020, the net revenues of Deutsche Bank’s corporate banking business (CBB) were up by 3% at €1.32bn compared to €1.29bn in Q2 2019.

Its investment banking business had a 46% surge in its second-quarter net revenues at €2.65bn compared to €1.82bn made in the same quarter in the previous year.

However, the group’s private banking business saw a 5% drop in net revenues in the second quarter at €1.98bn in comparison to €2.08bn reported in Q2 2019.

In the asset management business, the net revenues for Q2 2020 came down by 8% to €549m compared to €594m in the same quarter in 2019.

During the second quarter of 2020, Deutsche Bank said that it closed the legal entity merger of its private bank unit in Germany, and created an international private bank division by merging its wealth management and private and commercial business international units. The bank had also completed the integration of its corporate bank unit in Germany during Q2 2020.

Deutsche Bank CEO comments on the Q2 2020 results

Deutsche Bank CEO Christian Sewing said: “In a challenging environment we grew revenues and continued to reduce costs, and we’re fully on track to meet all our targets. This enabled us to more than offset higher provision for credit losses and remain profitable while supporting clients through difficult conditions.

“Our strong capital position not only demonstrates our resilience, but also gives us scope for growth.”