MENU
EU Economics

Eurozone economy in TATTERS as Deutsche Bank income plunges nearly 100 PER CENT

GERMAN giant Deutsche Bank shocked markets with a dismal trading update this morning, adding to fears the economic outlook for the eurozone has darkened.

deutsche bankGETTY   Deutsche Bank has suffered a sharp drop in income


Investors rushed to dump stocks in Deutsche after it revealed second quarter net income had dived by 98 per cent to around £16million (€20m) from from £668m (€796m) in the same period last year.Revenue in the quarter fell a sharp 20 per cent to £6.2 bn (€7.4bn).

The dire results sent Deutsche’s share price tumbling by 4.6 per cent.

The group boss today warned the poor outlook could lead to even more jobs cuts and cost cutting than was already underway.Chief executive John Cryan said: “If the current weak economic environment persists, we will need to be yet more ambitious in the timing and intensity of our restructuring.”

The firm is one of Germany’s largest lenders and had already lost around 40 per cent of its value this year amid investor concerns, which include the current low rate interest and a struggling European economy.

Britain’s vote to leave the European Union (EU) is expected to hamper growth and keep rates lower for longer.President of the European Central Bank Mario Draghi has previously admitted concern over pushing rates too low because of the affect it would have on bank balance sheets.

However, the central bank is expected to take extra action – which could include furher rate cuts – in the coming months in an effort to boost growth amid the hit from Brexit.

http://www.express.co.uk/finance/city/693803/Eurozone-economy-Deutsche-Bank-income-plunges-nearly-100-PER-CENT

Leave a Reply

Help put the World to rights and leave a Comment

  Subscribe  
Notify of
MENU
Powered by: Wordpress
%d bloggers like this: