[FRANKFURT] Deutsche Bank AG, which runs Europe's biggest investment bank, said second-quarter profit was almost wiped out as trading revenue slumped and it set aside money to cut jobs.
Net income decreased to 18 million euros (S$26.9 million) from 796 million euros a year earlier, the Frankfurt-based company said in a statement on Wednesday. Analysts forecast a loss of 22 million euros, according to the average of 11 estimates compiled by Bloomberg. The forecasts ranged from a profit of 524 million euros to a loss of 1.8 billion euros.
Chief executive officer John Cryan, 55, has been cutting risky assets, freezing dividend payments and eliminating about 9,000 staff to boost capital levels and reverse a slump that has made the stock the worst-valued global investment bank.
His task has been complicated by mounting legal costs, record-low interest rates and volatile markets, with Britain's decision to exit the European Union clouding economic prospects and potentially weighing on securities trading and deals activities across the region.
Deutsche Bank has lost about 43 per cent of its market value this year. At about a third, the company has the lowest price-to-tangible book value of the world's nine largest investment banks.
The discount indicates that it's worth less than investors would theoretically expect to receive if the firm liquidated its assets.