FRANKFURT, Germany — Deutsche Bank made a profit of 624 million euros ($748 million) during the pandemic year 2020 as bond trading revenues grew and the German bank met its target for cutting costs, according to (AP).
The yearly net profit compared to a loss of 5.26 billion euros in 2019, when earnings were hit by large one-time charges. For the fourth quarter of 2021, the bank made net profit of 189 million euros.
The bank reduced non-interest expenses by 15% to 21.2 billion euros and has cut costs for 12 straight quarters, management said in a statement Thursday. The cuts are part of a long-term transformation aimed at reducing riskier or less profitable lines of business and refocusing on its European and German client base.
Revenues for the year rose 32% to 9.3 billion euros at the investment banking division, boosted by a 28% jump in trading fixed income securities and currencies. The corporate banking and private banking divisions saw essentially flat revenues and asset management revenues fell 4%.
CEO Christian Sewing said the year was a transition period on the way to sustainable profitability going forward in 2021 and beyond: “We are confident this overall positive trend will continue in 2021 despite these challenging times.”