Under-pressure Deutsche Bank reports surprise profit BUT 14% rise in debt trading revenues way behind Barclays & Co.

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Deutsche Bank AG’s surprise third-quarter profit was overshadowed by Chief Executive Officer John Cryan failing to dispel concerns that uncertainty tied to a U.S. settlement will continue to linger.

Net income was 256 million euros ($279 million) after a loss of 6.01 billion euros a year ago, the Frankfurt-based lender said on Thursday. That beat an average 394 million-euro loss forecast by 14 analysts in a Bloomberg News survey. Trading revenue rose 10 percent, driven by debt and currencies, the biggest source of income, also beating estimates.

Cryan, 55, has struggled to stem a slide in shares and maintain client confidence after the U.S. Department of Justice last month requested $14 billion to settle a probe into faulty securities, more than twice the bank’s legal provisions. Some investors have called for deeper cost cuts amid concern that the lender will have to raise capital even after eliminating thousands of jobs.

“This is a small step on the path to improvement, but there are still many potholes in the road,” said Ulf Moritzen, who helps manage about 2.4 billion euros, including Deutsche Bank shares, at Aramea Asset Management in Hamburg, Germany. “The mood will be pretty depressed until the big settlements are out of the way.”

http://www.bloomberg.com/news/articles/2016-10-27/deutsche-bank-posts-unexpected-profit-on-lower-overhaul-costs

 

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