Deutsche Bank made a net profit in the second quarter despite losing more money on loans that aren’t being repaid by businesses hit by the shutdowns and restrictions that came with the virus outbreak.
FRANKFURT, GERMANY — Deutsche bank reported a small net profit of 61 million euros ($71 million) in the second quarter as cost-cutting and revenue growth outweighed increased loan losses due to the virus outbreak.
The gain compared with a loss of 3.1 billion euros in the year-earlier quarter, when the bank had large expenses related to its ongoing restructuring.
The bank based in Frankfurt, Germany, said Wednesday it had cut its cost base by 10% to 4.8 billion euros as it presses ahead with a drawn-out transformation aimed at improving profitability by reducing costs and riskier investments and activities.
The bank said that set-asides for loans that aren’t being repaid rose to 761 million euros in the quarter, from 161 million euros in the same quarter a year ago. Revenues rose 1 percent to 6.29 billion euros.
Chief Financial Officer James von Moltke said that the bank is “fully on track” with a restructuring that is shedding employees and reducing costs.