FRANKFURT: Deutsche Bank reported Wednesday a heavy fall in second-quarter profits as Germany’s biggest lender was hit by hefty charges related to legal disputes in the United States.
Net profit came in at 763 million euros ($845 million) from April to June, down 27 percent from a year earlier, weighed down by nearly 400 million euros in litigation charges.
But the bank confirmed its 2023 targets and CEO Christian Sewing said it had “again demonstrated good growth momentum across a diversified business portfolio” in the first half.
While the lender has fought its way back to health in recent times after years of scandals, particularly in its investment banking division, it still faces a series of problems.
In May, the bank reportedly agreed to pay $75 million to settle a suit alleging it benefited from supporting disgraced financier Jeffrey Epstein’s sex trafficking scheme.
Earlier this month, the US Federal Reserve fined the bank $186 million for sanctions violations and what it called “unsafe and unsound” banking practices at its US subsidiaries.
The Frankfurt-headquartered lender also set aside 260 million euros at the end of June to cover restructuring and severance payouts.
Revenues were up 11 percent on year at 7.4 billion euros, although they fell by 11 percent in the investment banking division.
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