Deutsche Bank barely ekes out profit in 2nd quarter

BERLIN – Deutsche Bank says its second-quarter profit dropped 98 per cent as the company pushed ahead with a restructuring effort and uncertainty over events such as Britain’s vote on European Union membership weighed on markets.

Germany’s biggest bank said Wednesday that it eked out net earnings of 20 million euros ($22 million) in the April-June period, down from 818 million euros a year earlier.

The bank said that net revenues dropped 20 per cent to 7.4 billion euros, reflecting a “challenging” market situation marked by uncertainty over the June referendum in which Britons voted to leave the EU, ultra-low interest rates in Europe and “the implementation of strategic decisions.”

Deutsche Bank said it also had to increase its provision for credit losses to 259 million euros from 151 million euros a year earlier.