Deutsche Bank, the major bank in Germany, has recently disclosed its worst quarterly financial performance in the last four years.
As a consequence of letting go of 18,000 employees, the German bank is starting to experience the negative impact of this decision on its operations.
Deutsche Bank has been facing hardships over the past few years. During the second quarter, the bank registered a net loss of 3.1 billion Euros, and it is currently in the process of significant workforce reductions globally. An internal restructuring initiative resulted in cutting 18,000 positions and reducing costs by 3.4 billion Euros, contributing to the significant decline in earnings.
This loss of 3.1 billion Euros is the most substantial quarterly loss reported by Deutsche Bank since the third quarter of 2015 when the bank endured a 6 billion Euro loss, the second largest in its history following the 2008 financial crisis. This poor performance follows a profitable first quarter in which the bank earned 201 million Euros. Additional restructuring activities are anticipated to continue to impact Deutsche Bank’s earnings in the future. Industry experts predict that the bank will end the entire fiscal year of 2019 with a loss.
On Wednesday, Deutsche Bank’s stock dropped by 2.3% to 6.97 Euros during afternoon trading. The bank has also announced plans to sell a portion of its trading business to BNP Paribas as part of its ongoing efforts to revitalize its operations.
