{"id":72196,"date":"2024-07-24T08:00:15","date_gmt":"2024-07-24T08:00:15","guid":{"rendered":"http:\/\/guid_108010301"},"modified":"2024-07-24T08:00:15","modified_gmt":"2024-07-24T08:00:15","slug":"deutsche-bank-shares-drop-7-after-lender-snaps-15-quarter-profit-streak","status":"publish","type":"post","link":"https:\/\/wp.timesamerica.net\/deutsche-bank-shares-drop-7-after-lender-snaps-15-quarter-profit-streak\/","title":{"rendered":"Deutsche Bank shares drop 7% after lender snaps 15-quarter profit streak"},"content":{"rendered":"<p> <span class=\"HighlightShare-hidden\" style=\"top:0;left:0\"><\/span><\/p>\n<div role=\"region\" aria-labelledby=\"Placeholder-ArticleBody-Video-108010898\"><\/div>\n<div class=\"group\">\n<p><span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-1\"><span class=\"waslinkname\">Deutsche Bank<\/span><span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"><\/span><\/button><\/span><\/span><\/span> on Wednesday snapped a 15-quarter profit streak with a narrower-than-expected loss, as it made a provision for an ongoing lawsuit over its Postbank division.<\/p>\n<p>Shares fell more than 7% in early deals, despite analysts characterizing the results as broadly solid, with the European banking sector down 0.85% overall at 8:29 a.m. in London.<\/p>\n<div style=\"height:100%\" class=\"lazyload-placeholder\"><\/div>\n<p>Net loss attributable to shareholders was 143 million euros ($155.1 million), against an LSEG poll of analysts which had predicted a loss of 145 million euros.<\/p>\n<p>Germany&#8217;s biggest bank had previously flagged it would take a hit in the quarter on the back of the Postbank provision, which it confirmed Wednesday would amount to 1.3 billion euros. The long-running lawsuit by investors alleges Deutsche Bank underpaid to take over the retail banking giant in 2010.<\/p>\n<p>The lender reported net revenue was up 2% to 7.6 billion euros in the second quarter, while efficiency savings reached 1.5 billion euros.<\/p>\n<\/div>\n<div>\n<div class=\"Collapsible-proliveCollapsableContainer\" role=\"button\" tabindex=\"0\"><svg width=\"256\" height=\"256\" viewBox=\"0 0 256 256\" aria-labelledby=\"title desc\" role=\"img\" focusable=\"false\" preserveAspectRatio=\"xMinYMin\" class=\"Collapsible-stockChartIcon\"><title>Stock Chart Icon<\/title><desc>Stock chart icon<\/desc><g transform=\"translate(1.4065934065934016 1.4065934065934016) scale(2.81 2.81)\"><path d=\"M 87.994 0 H 69.342 c -1.787 0 -2.682 2.16 -1.418 3.424 l 5.795 5.795 l -33.82 33.82 L 28.056 31.196 l -3.174 -3.174 c -1.074 -1.074 -2.815 -1.074 -3.889 0 L 0.805 48.209 c -1.074 1.074 -1.074 2.815 0 3.889 l 3.174 3.174 c 1.074 1.074 2.815 1.074 3.889 0 l 15.069 -15.069 l 14.994 14.994 c 1.074 1.074 2.815 1.074 3.889 0 l 1.614 -1.614 c 0.083 -0.066 0.17 -0.125 0.247 -0.202 l 37.1 -37.1 l 5.795 5.795 C 87.84 23.34 90 22.445 90 20.658 V 2.006 C 90 0.898 89.102 0 87.994 0 z\" transform=\" matrix(1 0 0 1 0 0) \" stroke-linecap=\"round\" \/><path d=\"M 65.626 37.8 v 49.45 c 0 1.519 1.231 2.75 2.75 2.75 h 8.782 c 1.519 0 2.75 -1.231 2.75 -2.75 V 23.518 L 65.626 37.8 z\" transform=\" matrix(1 0 0 1 0 0) \" stroke-linecap=\"round\" \/><path d=\"M 47.115 56.312 V 87.25 c 0 1.519 1.231 2.75 2.75 2.75 h 8.782 c 1.519 0 2.75 -1.231 2.75 -2.75 V 42.03 L 47.115 56.312 z\" transform=\" matrix(1 0 0 1 0 0) \" stroke-linecap=\"round\" \/><path d=\"M 39.876 60.503 c -1.937 0 -3.757 -0.754 -5.127 -2.124 l -6.146 -6.145 V 87.25 c 0 1.519 1.231 2.75 2.75 2.75 h 8.782 c 1.519 0 2.75 -1.231 2.75 -2.75 V 59.844 C 41.952 60.271 40.933 60.503 39.876 60.503 z\" transform=\" matrix(1 0 0 1 0 0) \" stroke-linecap=\"round\" \/><path d=\"M 22.937 46.567 L 11.051 58.453 c -0.298 0.298 -0.621 0.562 -0.959 0.8 V 87.25 c 0 1.519 1.231 2.75 2.75 2.75 h 8.782 c 1.519 0 2.75 -1.231 2.75 -2.75 V 48.004 L 22.937 46.567 z\" transform=\" matrix(1 0 0 1 0 0) \" stroke-linecap=\"round\" \/><\/g><\/svg><\/p>\n<div class=\"Collapsible-proLivePlayerCloseOrExpand\"><img decoding=\"async\" src=\"https:\/\/static-redesign.cnbcfm.com\/dist\/a54b41835a8b60db28c2.svg\" class=\"Collapsible-dismissButton\" alt=\"hide content\"><\/div>\n<\/div>\n<div style=\"border:1px solid #d9d9d9;width:100%\" class=\"InteractiveChart-container\"><iframe title=\"Deutsche Bank share price.\" src=\"\/appchart?symbol=DBK-DE&amp;range=5D&amp;type=line&amp;embedded=true&amp;$DEVICE$=undefined\" height=\"460\" scrolling=\"no\" style=\"border:0;width:100%\"><\/iframe><\/div>\n<div class=\"InteractiveChart-caption\">Deutsche Bank share price.<\/div>\n<\/div>\n<div class=\"group\">\n<p>Revenue reports varied across the business. At its investment bank division, a recent area of strength, they jumped 10% year-on-year to 2.6 billion euros \u2014 but fell 3% to 2.1 billion euros in fixed income and currencies. Revenue in corporate banking was nearly flat at 1.9 billion euros.<\/p>\n<p>Other highlights included:<\/p>\n<div style=\"height:100%\" class=\"lazyload-placeholder\"><\/div>\n<ul>\n<li>Profit before tax excluding the Postbank provision was 1.7 billion euros, up from 1.4 billion euros in the second quarter of 2023.<\/li>\n<li>Provision for credit losses was 476 million euros, up from 401 million euros a year ago.<\/li>\n<li>CET 1 capital ratio, a measure of bank solvency, nudged up to 13.5% from 13.4% in the first quarter of the year.<\/li>\n<\/ul>\n<p>Deutsche Bank CEO Christian Sewing said in a statement Wednesday that the bank remained on-track with its distribution commitment to shareholders, which it has previously stated is for&nbsp;a sum in excess of<strong>&nbsp;<\/strong>8 billion euros in share buybacks across the&nbsp;2021-2025&nbsp;financial year period. Earlier this month, the bank said distributions to date had totalled 3.3 billion euros.<\/p>\n<p>In a Wednesday note, Citi analysts called it a &#8220;solid quarter,&#8221; with some divisions above consensus, net interest margins fading at a slower pace than initially expected and a largely-unchanged outlook for 2024 and 2025.<\/p>\n<p>RBC analysts labelled the results &#8220;good,&#8221; particularly in investment banking, but said loan losses were higher than expected.<\/p>\n<p>Chief Financial Officer James von Moltke told CNBC&#8217;s Caroline Roth in a Wednesday interview that Deutsche Bank saw several positive drivers for the second half, including in net interest income \u2014 which fell 2% in corporate banking the second quarter, according to the Wednesday earnings.<\/p>\n<p>&#8220;We had called earlier this year on the net interest income side for a downdraft relative to [20]23, we actually think the banking book segments may be stable, essentially flat to last year, and that&#8217;s actually very encouraging, reflecting lower funding costs, better spreads on both the deposit and the loan side. Still more sluggish loan growth than we&#8217;d like to see, but overall an encouraging picture,&#8221; Von Moltke said.<\/p>\n<p>&#8220;On the financial market and corporate finance side, we see the momentum there coming through that we&#8217;d hoped to see,&#8221; he added, pointing to revenue doubling in its origination and advisory business year-on-year.<\/p>\n<p>The second-quarter result maintains a recent trend of earnings beats for the lender. <span class=\"waslinkname\">Back in April<\/span>, the bank posted 10% higher profit, logging its best quarterly result for the metric since 2013.<\/p>\n<p>It also comes on a busy day for European bank earnings, with Italy&#8217;s <span class=\"waslinkname\">UniCredit<\/span> maintaining a <span class=\"waslinkname\">14-quarter profit streak<\/span> as Spain&#8217;s <span class=\"waslinkname\">Santander<\/span> reported a 20% <span class=\"waslinkname\">leap in net profit<\/span>.<\/p>\n<\/div>\n<div class=\"group ReadMore-container-cnbc\" id=\"RegularArticle-RelatedLinks-1\" data-test=\"RelatedLinks\" data-analytics=\"RegularArticle-RelatedLinks\">\n<div class=\"ReadMore-title-cnbc\">\n<h2>Read more<\/h2>\n<\/div>\n<div class=\"links\">\n<div class=\"ReadMore-card-cnbc\">\n<div class=\"ReadMore-linkContainer\">\n<div class=\"ReadMore-textContainer\"><span class=\"waslinkname\">Deutsche Bank criticized by German regulator for financial reporting error<\/span><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p><em>\u2014 CNBC&#8217;s Ganesh Rao contributed to this story.<\/em><\/p>\n<\/div>\n<div id=\"ArticleBody-MobileAdhesion\" class=\"MobileAdhesion-container\" data-module=\"mps-slot\"><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Deutsche Bank on Wednesday snapped a 15-quarter profit streak with a narrower-than-expected loss, as it made a provision for an ongoing lawsuit over its Postbank division. Shares fell more than 7% in early deals, despite analysts characterizing the results as broadly solid, with the European banking sector down 0.85% overall at 8:29 a.m. in London. &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-72196","post","type-post","status-publish","format-standard","hentry","category-bussiness","no-thumb","no-post-featured"],"_links":{"self":[{"href":"https:\/\/wp.timesamerica.net\/wp-json\/wp\/v2\/posts\/72196"}],"collection":[{"href":"https:\/\/wp.timesamerica.net\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/wp.timesamerica.net\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/wp.timesamerica.net\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/wp.timesamerica.net\/wp-json\/wp\/v2\/comments?post=72196"}],"version-history":[{"count":0,"href":"https:\/\/wp.timesamerica.net\/wp-json\/wp\/v2\/posts\/72196\/revisions"}],"wp:attachment":[{"href":"https:\/\/wp.timesamerica.net\/wp-json\/wp\/v2\/media?parent=72196"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/wp.timesamerica.net\/wp-json\/wp\/v2\/categories?post=72196"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/wp.timesamerica.net\/wp-json\/wp\/v2\/tags?post=72196"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}