Deutsche Bank says Q2 net income plunges nearly 100% year-on-year

Deutsche Bank, the German bank which is an important part of the global financial system, announced revenue and income decline Wednesday which could add further concerns for investors made jittery by a combination of Brexit and previous issues at the bank.

Deutsche’s share price fell by 4 percent in early trading Wednesday after it announced second-quarter net income was down 98 percent from the same period in the previous year, to 20 million euros ($22 million), as it exited parts of its business while revenues were down 20 percent to 7.4 billion euro.

Further cuts may be needed, John Cryan, chief executive of Deutsche Bank, warned.

“If the current weak economic environment persists, we will need to be yet more ambitious in the timing and intensity of our restructuring,” he said in a statement.

Deutsche’s CET1 ratio – a key measure of financial strength – improved slightly to 10.8 percent.

The bank, one of Germany’s largest lenders, has lost around 40 percent of its market value this year as concerns mount about its capital position and $14 billion in fines over past misconduct.

John Cryan, the bank’s co-chief executive who was appointed in July last year, has embarked on a drastic plan to meet its capital targets, including scrapping dividend payments to shareholders, thousands of job cuts and asset sales. Raising new capital is likely to be difficult because of the bank’s holdings of debt for some of the worse off euro zone countries.

Source: CNBC