Deutsche Bank 3Q Net Profit More Than Doubled as Revenue Declined

By Pietro Lombardi Features Dow Jones Newswires

Deutsche Bank AG (DBK.XE) said Thursday that its third-quarter net profit more than doubled, while revenue fell significantly.

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The German bank said net profit after minorities stood at 647 million euros ($765.4 million) compared with EUR256 million the previous year, supported by lower costs.

Noninterest expenses declined 14% on year to EUR5.66 billion.

Revenue decreased 9.6% to EUR6.78 billion, hindered by declining sales and trading revenue, which stood at EUR1.51 billion.

Analysts had forecast net profit of about EUR253 million and revenue of EUR6.84 billion.

The decline in revenue was widely expected. Low market volatility, depressed trading volumes and the negative effects of persistently low interest rates have hit banks globally in recent months.

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Deutsche Bank traditionally has relied more heavily on fixed-income trading for profit than many of its peers. Big U.S. banks that already reported third-quarter earnings got bumps from strong investment-banking results or other businesses that helped offset weaker trading revenue.

"While the revenue environment remained challenging, we have made significant progress on our key initiatives such as the planned merger of Deutsche Bank and Postbank in Germany, as well as the preparation for the IPO of our asset management business," Chief Executive John Cryan said.

Write to Pietro Lombardi at pietro.lombardi@dowjones.com

(END) Dow Jones Newswires

October 26, 2017 01:56 ET (05:56 GMT)