Deutsche Bank manages the turnaround

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 Deutsche Bank manages the turnaround

The restructuring of Deutsche Bank is making further progress. In the third quarter, the bank even made profits again - thanks to strong securities trading. Good news also comes from another area.

Overall, the group posted a profit of 309 million euros for the third quarter, after a loss of 832 million euros in the same period last year. The profit before taxes was 482 million euros, after a loss of 687 million euros in the same quarter of the previous year.

This turnaround was made possible by the excellent investment banking. In the trading business with bonds and currencies alone, revenues rose by 47 percent. In the interest business, income even doubled. Business also went well in the issuing and advisory business, with sales up 15 percent. Overall, the investment bank was able to increase its income by 43 percent to 2.4 billion euros.

Bad bank losses drop dramatically

This is not really surprising, as the balance sheets of the American investment banks had already shown how much the financial institutions active in this area have benefited from the rapid recovery of the financial markets.

This also applies to the "unit for releasing capital", once known as the "bad bank", where the bank parks its bad loans from previous businesses - and tries to sell them. Thanks to the good financial markets, Deutsche Bank was able to more than halve its losses in this area to 427 million euros.

On the way to recovery

This means that the entire bank is still on the road to recovery. This is also shown by another calculation: For example, the total income of the group rose by 13 percent in the third quarter while expenditure fell by ten percent.

CEO Christian Sewing is quoted as saying: "In the fifth quarter of our transformation, in addition to our cost discipline, we also showed that we can gain market share. Our focused business model is paying off, and we expect that a considerable part of our earnings increases will prove to be sustainable becomes."

Loan loss provisions

Risk provisioning for loans at risk of default, which was much noticed during the crisis, also shrank significantly in the third quarter, to 273 million euros, after 761 million in the second quarter. Deutsche Bank does not initially expect a further deterioration in the lending business.

Things went less well in the private customer bank. Here the yields stagnated. As a result of the changed customer behavior and further depressing costs, the bank has already announced that it will reduce the number of Deutsche Bank branches from around 500 to around 400