Frankfurt Germany’s biggest lender Deutsche Bank on Wednesday reported a net loss of 3.2 billion euros ($3.6 billion) in the second quarter, as the troubled financial giant lurched into its latest restructuring.
“We have already taken significant steps to implement our strategy to transform Deutsche Bank. These are reflected in our results,” chief executive Christian Sewing said in a statement.
Earlier this month, Deutsche said it would slash 18,000 jobs worldwide by 2022, retreat from most share trading activities and refocus on its German and European roots, after decades attempting to compete with Wall Street titans.
The moves also aim to slash annual costs by six billion euros.
Costs relating to the restructuring amounted to 3.4 billion euros in the second quarter, meaning the firm would have made 231 million euros net profit without the effect.
In 2018 — the year that marked Deutsche’s return to annual net profits after years of woes — the second quarter had brought a bottom line in the black to the tune of 361 million euros.
In April-June this year, revenues at Deutsche fell six percent year-on-year, to 6.2 billion euros.
And the group made a pre-tax loss of 946 million euros, compared with a 1.7-billion-euro profit in the same quarter of 2018.
But Deutsche underlined that its restructuring was already bringing lower costs, falling by four percent.
Meanwhile talks are underway with French bank BNP Paribas to sell parts of its trading activities, and more than 900 staff have already been laid off.