Business

Deutsche Bank threatens deeper cost cuts as profits dive

Deutsche Bank headquarters in Franfkurt Image copyright Getty Images

Deutsche Bank has warned further cost cutting might be needed as profits tumbled in the second quarter amid low interest rates and volatile markets.

Net profit at Germany's biggest lender fell 98% to €20m (£16.7m), compared with €796m for the same period in 2015.

Chief executive John Cryan said: "If the current weak economic environment persists, we will need to be yet more ambitious in the timing and intensity of our restructuring."

Revenues were down 20% to €7.4bn.

Mr Cryan, a British banker who took the helm at Deutsche last year, has embarked on an overhaul and has previously warned restructuring costs are likely to peak this year.

The impact of the shake-up was seen in restructuring charges of €207m and a writedown of €285m on its asset management business.

Deutsche Bank's value has nearly halved since the beginning of the year, with its shares having fallen 43%.

In June, the International Monetary Fund said that of the banks deemed large enough to pose a threat to the financial system should things go wrong, Deutsche Bank was the riskiest.

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