The German multinational investment bank and financial services company Deutsche bank , Sways to its small annual profit in the year 2020 since 2014, after the gains from its Investment banking division.
The largest lender of Germany posted a full-year net profit of 113 million euros which is equivalent to $135.7 million, the analysts had expected a loss of 201 million euros according to Refinitiv.
The bank had made a profit of 51 million euro for the fourth quarter compared to a €325 million loss.
Cost reductions and higher revenues helped Deutsche’s investment banking division to perform well, with net revenues inclined to 32% to 9.8 billion euros in 2020.
In a statement the bank said that more than offset a rise in provision for credit losses resulting from COVID-19.
James von Moltke the CFO of Deutsche bank announced that it had hit all of its targets for the year, and also said that investment bank was the strongest business area.
The private and corporate bank had managed to offset the “headwinds” from low interest rates, while the asset management business had seen inflows of 14 billion euros.
Christian Sewing, the CEO of Deutsche bank said:
“In the most important year of our transformation, we were able to more than offset transformation-related effects and elevated credit provisions – despite the global pandemic,”
“We have built firm foundations for sustainable profitability, and are confident that this overall positive trend will continue in 2021, despite these challenging times.”
The loss of Loan provisions were 251 million, versus 723 million in the final quarter of 2019.
