Deutsche Bank made a profit in the third quarter, posting a net income of €259 million ($279 million) against analysts’ forecasts of a loss.
The bank got a boost from increased trading revenues, which was up 10% to €2.6 billion led by the debt and currencies business.
Analysts surveyed by Bloomberg News forecast a loss of €394 million on average.
In the third quarter last year, the bank posted a near-€6 billion loss after CEO John Cryan began an overhaul of the bank’s balance sheet and operating costs.
The solid third quarter performance comes against a backdrop of volatile stock moves and legal disputes with the US.
Shares plummeted close to 30-year lows last month after reports surfaced that the US Department of Justice was looking to impose a $14 billion fine for mortgage-backed security misselling in the run-up to the financial crisis. The fine is bigger than the bank’s market value, leading to fears the bank would be sunk.
“We continued to make good progress on restructuring the bank,” Cryan said in the banks results statement. “However, in the past several weeks these positive developments were overshadowed by the attention around our negotiations concerning the Residential Mortgage Backed Securities matter in the United States. This had an unsettling effect. The bank is working hard on achieving a resolution of this issue as soon as possible.”
Here are the main points from the bank’s third quarter results:
- Revenues up to €7.5 billion from €7.3 billion in the same period last year, “despite a tough interest rate environment.”
- Noninterest expenses halved to €6.5 billion from €13.2 billion in in the same period last year
- Capital ratio (a measure of the bank’s financial strength) up to 11.1% from 10.8% last quarter