By Mauro Orru
Deutsche Bank AG posted profit ahead of analysts’ estimates for the second quarter as provisions for credit losses plummeted since customers navigated the effects of the coronavirus pandemic better than expected.
The German bank said Wednesday that its closely watched after-tax profit surged to 828 million euros ($978.5 million) from EUR61 million a year earlier, while profit attributable to shareholders came in at EUR692 million compared with a loss of EUR77 million last year.
Analysts had expected after-tax profit of EUR506 million, according to company-provided consensus.
The bank reported EUR75 million in provisions for credit losses, down from EUR761 million last year, when they reached the highest level in more than a decade as banks were bracing for potentially huge losses on loans to consumers and businesses due to the coronavirus pandemic.
Analysts had expected provisions of credit losses of EUR174 million.
Quarterly revenue fell slightly to EUR6.24 billion from EUR6.29 billion, with revenue at its investment bank down 11% and its corporate bank posting an 8% decline. Analysts had forecast revenue of EUR6.03 billion.
Deutsche Bank said it continues to expect revenue at group level as well as at its core bank and investment bank businesses to be essentially flat in 2021 compared to the prior year.
Write to Mauro Orru at email@example.com; @MauroOrru94
Read More: Deutsche Bank 2Q After-Tax Profit EUR828M