Deutsche Bank has made its biggest quarterly loss in four years as it counts the costs of plans to reduce its global workforce by 18,000.
The German lender made a €3.1bn (£2.8bn) net loss in the second quarter, driven by €3.4bn in costs related to job cuts and reorganisation at the bank.
Deutsche Bank expects the turnaround strategy to cost a total of €7.4bn and is aiming to return to profit next year.
It is the bank’s biggest quarterly net loss since the third quarter of 2015, when that figure reached €6bn, and is the second largest since the final months of 2008, when the financial crisis took hold. It also follows a €201m profit in the first quarter of 2019.
Even without the extra charges, Deutsche’s net income would have dropped by more than 40% to €231m in the second quarter, compared with the same period a year earlier. Further restructuring charges are expected to dent the bank’s earnings in the second half of the year and the lender is expected to report a full-year loss for 2019.
This month, Deutsche Bank announced the plans to cut about a fifth of its 91,500-member global workforce by 2022. Over the past two and a half weeks, more than 900 employees have either been handed their notice or told their role will be eliminated. Most were employed in the equity trading division, and the Guardian understands that hundreds have been lost from Deutsche’s City of London office.
