Deutsche Bank: in the Black with taste – Handelsblatt

Headquarters of Deutsche Bank in Frankfurt

analysts had expected on average a net loss of 600 million euros in the third quarter.

(photo: Reuters)

FrankfurtGood news had German-Bank-chief John Cryan at the last time only a few in the Luggage. On Thursday, he was able to surprise its shareholders, finally, once again positive, but also some disturbing news.

The largest German money house earned in the third quarter, the bottom line is 278 million Euro. The profit before taxes for the first nine months of 2016 is 1.6 billion euros. Analysts had red Numbers and in the section of a net loss of 600 million euros for the third quarter are expected. Above all, the many legal disputes that still smolder, shall continue to apply as the great Unknown. For these risks the Bank needs to put back in the third quarter of 400 million euros. Thus, the provisions add up to 5.9 billion euros.

The (un)most profitable banking groups in Germany

• co-operative Central banks

  Profitability 2015: -1,08 %

  profitability 2014: 2,64 %

  All data in percent of the equity capital after taxes. Source: Bundesbank

• major banks (Commerzbank, Deutsche Bank, Postbank, Unicredit/Hypo-Vereinsbank)

  profitability 2015: 1,81 %

  profitability 2014: 3,16 %

  All data in percent of the equity capital after taxes. Source: Bundesbank

• country banks (including Bayern LB, LBBW)

  profitability 2015: 1,89 %

  profitability in 2014, -1.5% in

  All data in percent of the equity capital after taxes. Source: Bundesbank

• regional banks and other commercial banks (including BFI Bank, Deutsche Leasing Finance)

  profitability 2015: 2,72 %

  profitability 2014: 4,23 %

  All data in percent of the equity capital after taxes. Source: Bundesbank

• building and loan associations (including building and loan Association Bausparkasse Mainz, LBS)

  profitability 2015: 3,66 %

  profitability in 2014 to 5.6 %

  All data in percent of the equity capital after taxes. Source: Bundesbank

• average of all banks

  profitability in 2015: 3,96 %

  profitability 2014: 3,98 %

  All data in percent of the equity capital after taxes. Source: Bundesbank

• real credit institutions (among others, the Munich mortgage Bank, Wüstenrot Bank)

  profitability 2015: 4,29 %

  profitability 2014: -1,67 %

  All data in percent of the equity capital after taxes. Source: Bundesbank

• savings banks

  profitability in 2015: 6,52 %

  profitability 2014: 6,72 %

  All data in percent of the equity capital after taxes. Source: Bundesbank

• credit cooperatives (including cooperative banks)

  profitability 2015: 7,34 %

  profitability 2014: 8,59 %

  All data in percent of the equity capital after taxes. Source: Bundesbank

“The quarterly results demonstrate the strength of our operating business and the outstanding work of our employees. We came to the restructuring of our Bank is progressing well" said Cryan. Your income could increase the Bank’s 7.5 billion euros to 7.3 billion in the prior-year period. The profit before tax climbed to 619 million euros, after a loss of 6.1 billion euros by negative special effects in the previous year. For the profit in the third quarter of this year, especially the strong performance in securities trading in addition to positive special effects. The Global Markets increased its revenues by ten per cent to 2.6 billion Euro and generated a profit before taxes of EUR 330 million.

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In all other operational areas of the company, the income, apart from the special effects went back, what Cryan, especially the chronically low interest rates are responsible. Was charged to the quarter due to an increase in risk provisioning in the lending business, 58 percent to 327 million Euro. Mainly due to higher value adjustments were due to the continuing market weakness in the shipping industry, as well as in the Oil and gas industry.

The better-than-expected earnings should the Bank after the severe turbulence of the past few weeks, at least a little respite bring. Since transpired that the U.S. Department of justice, the negotiations on a settlement for bad mortgages opens with a punitive claim of $ 14 billion, the Bank is in a deep crisis of confidence slipped, and had to defend themselves against even rumors of a government bailout.

The bad news for the workforce: Cryan agreed to by the employee to a worsening of the savings rate. “Unfortunately, we have to assume that the situation remains for a while is difficult,” wrote the Chairman of the Board on Thursday in a letter to employees. “We need to accelerate our rebuild and strengthen, as we have indicated’ Yes ‘ to the half of the year already.”