Deutsche Bank was barely profitable in the second quarter and the chief executive will now examine further cost cuts.
Deutsche Bank had a profit of 20 million euros in the second quarter of 2016. The reasons for the collapse of income were manifold, according to a statement by the German lender.
Apart from the costs related to the reorganization, the bank mainly struggled with lower earnings due to the difficult market. The bank had an income of 7.4 billion euros, 20 percent less than a year ago. Then, profit had been 818 million euros.
«If the current weak economic environment persists, we will need to be yet more ambitious in the timing and intensity of our restructuring,» said John Cryan, CEO at Deutsche, in the statement.
Capital Worries
The worries about Deutsche's capital base have not lessened much, with the CET1 ratio up slightly to 10.8 percent. The increase of 0.1 percentage point was less than the 0.5 percentage points the bank had aimed for.
Cryan hopes to get the approval by the authorities to sell the bank's stake in Hua Xia, the Chinese bank.
The results of the stress tests for European banks are due at the end of the week, and with the not-so-bright perspectives of Deutsche, it may yet have to tap into the capital markets.
