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Deutsche Bank third-quarter net profit down 65 percent but above expectations

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Deutsche Bank third-quarter net profit down 65 percent but above expectations
FILE PHOTO: People are silhouetted next to the Deutsche Bank's logo prior to the bank's annual meeting in Frankfurt, Germany, May 24, 2018. REUTERS/Kai Pfaffenbach/File Photo   -   Copyright  Kai Pfaffenbach(Reuters)
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FRANKFURT (Reuters) – Deutsche Bank <DBKGn.DE> posted a 65 percent decline in net profit in the third quarter as it restructures under new leadership but said it was on track to swing to a full-year profit.

Net profit of 229 million euros (202.4 million pounds) at Germany’s flagship lender was down from 649 million euros a year ago but still beat the 149 million euros expected in a Reuters poll of analysts.

Revenue in the quarter was 6.175 billion euros, down 9 percent from 6.776 billion a year ago.

Deutsche Bank is trying to bounce back from three consecutive years of losses and a run of negative headlines earlier this year, including an abrupt management reshuffle, a downgrade by Standard & Poor’s and failing the U.S. Federal Reserve’s stress test.

“We have our costs under control and sufficient capital to grow. We are on track to be profitable in 2018, for the first time since 2014,” Chief Executive Christian Sewing said on Wednesday.

Sewing took over in April and has embarked on plans to cut more than 7,000 jobs in an overhaul of the bank.

The quarter was marked by continued weakness in its key trading business. Revenue at its cash-cow bond-trading division dropped by 15 percent.

The bank’s shares are down 41 percent so far this year.

(Reporting by Tom Sims; Editing by Maria Sheahan)

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