According to the bank’s 24 July statement, had it not been for “strategic transformation”-related charges, in the amount of €3.4bn, its net income would have totalled €231m”. This still is under the €401m the bank posted in the same quarter last year. Net revenues were also down 6% year-on-year, at €6.2bn in Q2 2019.
As part of the bank’s strategy, some 900 employees have been “given notice or informed their role will be eliminated”. CEO Christian Sewing had previously announced a plan for some 18,000 jobs to be cut.
“We have already taken significant steps to implement our strategy to transform Deutsche Bank,” Sewing said in the statement. “Excluding transformation charges the bank would be profitable and in our more stable businesses revenues were flat or growing. This, combined with our solid capital and liquidity position, gives us a firm foundation for growth.”
The slump is the latest in a series of blows for the German bank: at the end of September 2018, the bank had been warned by Germany’s federal financial supervisory authority, BaFin, to step up its game when it came to preventing money laundering.