FRANKFURT, Germany (AP) – Deutsche Bank saw its net profit rise 6% to 329 million euros ($ 381 million) in the third quarter despite a sharp increase in restructuring costs. Germany’s largest bank’s bottom line has benefited from fewer bad-going loans as the economy rebounds from the coronavirus pandemic and credit support from governments and the European Central Bank.
The bank said on Wednesday that its multi-year efforts to streamline its business were on track and that 90% of the costs of its transformation were already factored in.
Deutsche Bank has only had to set aside € 117 million ($ 136 million) for losses on outstanding loans, down 57% from the same quarter a year ago. Since then, some of the worst pandemic restrictions have eased, as governments have given credit guarantees and other support to businesses and the European Central Bank has taken steps to keep market interest rates low, thus reducing stress on borrowers.
The bank suffered a loss of 583 million euros ($ 676 million) for its restructuring, more than five times the total in the same quarter a year ago, largely related to a contract settlement and write-downs software related to its migration to cloud computing.
Deutsche Bank is going through a lengthy restructuring aimed at reducing employee numbers and costs and pulling out of less profitable lines of business to achieve more stable profits after a period of repeated losses and problems with regulators who imposed reductions. high costs in fines and settlements.
The bank said in a statement that restructuring costs had increased its non-interest expense for the quarter, but would result in lower costs for future quarters.