Deutsche Bank reported a bigger than forecast quarterly loss of €3.15 billion euros ($3.5 billion), underlining the challenges faced by chief executive Christian Sewing as he attempts to turn around the struggling business.
Germany’s largest bank had already flagged it would lose around €2.8 billion in the quarter when it announced a restructuring plan that will see 18,000 jobs go and cost €7.4 billion overall.
The size of the loss, compared with a profit of €401 million a year ago, prompted the bank’s shares to slide as much as 5.8% in Frankfurt before regaining some ground. The bigger loss stemmed from higher goodwill impairment charges than foreseen when the bank announced its restructuring on July 7.
As it reshapes, the bank expects to post a loss in 2019, meaning that it will have been in the red for four out of the past five years. But it is aiming for profit in 2020.
The bank also anticipates 2019 revenue to be lower than in 2018. That forecast marks a further scaling down in expectations from previous quarters.
Founded in 1870, the bank is considered one of the most important for the global financial system., along with U.S. heavyweights JPMorgan Chase, Bank of America and Citigroup.
