FRANKFURT (Reuters) – Deutsche Bank posted a sharp rise in second-quarter net profit to 466 million euros ($547 million) on Thursday, benefiting from lower legal costs for past misdeeds that outweighed a dip in debt trading.
Germany’s flagship lender beat the expectations of analysts, who had forecast net income of 273 million euros after just 20 million euros in the second quarter of last year, according to a Reuters poll.
Chief Executive John Cryan said in a statement: “Despite the significant improvement, this level of profitability falls short of our longer term aspirations. Revenues were not as universally strong as we would have liked, in large measure because of muted client activity in many of the capital markets.”
Revenues at Deutsche Bank’s cash-cow bond-trading division were 12 percent lower in the quarter due to decreased client activity in less volatile markets.
“As we modernize our bank we are turning our focus onto building profitable growth,” Cryan said.
Reporting by Tom Sims; Editing by Georgina Prodhan