Deutsche Bank Increases COVID-19 Impact Provisions
After reporting a net loss attributable to shareholders of €77 million, Germany’s largest bank has allocated further funds to cover credit losses.
The bank has now allocated €761 million in credit loss provisions, up from €500 million reported in Q1, a reflection of the continued impact of the COVID-19 pandemic.
Deutsche Bank is currently grappling with a major restructure in response to annual losses sustained over five years.
However, in its Q2 earnings report, the bank posted a €158 million pre-tax profit despite its restructuring costs and a rise in credit loss provisions. Its year-on-year group net revenues also saw a 1% increase to €6.3 billion.
Deutsche Bank’s chief executive, Christian Sewing, said that the group is optimistic and fully on track to meet all of its targets.
“In a challenging environment we grew revenues and continued to reduce costs, and we’re fully on track to meet all our targets,” the CEO said in a statement on Wednesday. “This enabled us to more than offset higher provision for credit losses and remain profitable while supporting clients through difficult conditions.”
The bank’s net revenue of €6.3 billion for Q2 beat estimates from analysts compiled last week, which forecast only €6 billion, slightly lower than the same period in 2019.