This earnings report is literally useless. The trading business continues to struggle. The media is fascinated with the announcement that the company might move 4,000 jobs out of Great Britain because of BREXIT. The real reason has less to do with BREXIT and more to do with the bank losing market share — because they suck.
Bear in mind, I am long the stock.
Litigation costs were estimated to come in at 336m euros, but they only took a 31m euro charge.
Income before taxes rose 52% year-on-year to €878m, net income up 143% to €575m — but they missed on revenues.
“I am pleased with the start we have made to 2017. Client engagement is strong, asset flows are returning across the bank and activity is picking up. Our cost-cutting efforts are starting to pay off, while we have reduced complexity significantly. We have laid firm foundations upon which Deutsche Bank can once again deliver good results.”
Here’s Bloomberg’s take.
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DB is the next Lehman.
DB is a walking zombie that just wont go down – even with of all the bad debt held off its books and not priced to market, this sucker just won’t go down.