Deutsche Bank expects quarterly profit to top forecasts

  • Deutsche Bank expects to report second-quarter net profit well ahead of forecasts.
  • Group revenues were expected to be around 6.6 billion euros.
  • Deutsche Bank had been expected to publish its results on July 25.

Deutsche Bank expects to report second-quarter net profit well ahead of forecasts, a rare piece of good news as Germany's largest lender cuts jobs and costs to try to restore profitability.

The bank said net profit would be around 400 million euros ($468 million) in the quarter, more than double a consensus forecast of 159 million euros but still below 466 million euros reported a year earlier.

The bank also halted a steep decline in revenue. It said revenue was around 6.6 billion euros, ahead of expectations of 6.4 billion. That is flat from the same quarter in 2017, when revenue fell 10 percent from a year earlier.

"Management believes that these results demonstrate the resilience of the franchise," Deutsche Bank said in an unexpected summary of earnings ahead of a detailed report due on July 25.

Deutsche Bank shares were up 8.2 percent, well ahead of a largely flat DAX index.

Earlier this year the bank, under its new Chief Executive Officer Christian Sewing, announced plans to axe more than 7,000 jobs to cut costs and restore profitability.

The announcement follows a series of negative headlines for Deutsche, which has posted three consecutive years of losses and saw an abrupt management reshuffle earlier this year.

The bank has made progress in its plans to reduce staff, with headcount down about 1,700 people to just over 95,400, Deutsche said on Monday.

Costs are expected at 5.8 billion euros, compared with estimates of 6.0 billion euros, Deutsche said.