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No global bank, with the exception of Morgan Stanley, had a particularly enjoyable second quarter, what with the nasty case of sniffles that’s been going around. And, given that there is perhaps no more vulnerable or immunocompromised Bank than Deutsche, one might expect none to be as badly affected, or even killed, by the global pandemic.

But no! Through sheer triumph of the will, the Germans have not only survived but thrived. Of course, “thriving” it their case involves losing money, just not as much as you—or analysts—expected.

Deutsche Bank on Wednesday reported a net loss attributable to shareholders of 77 million euros ($90.3 million) for the second quarter of 2020, beating analyst expectations.

This marks a stark improvement from the bank’s 3.2 billion euro loss for the same period last year in the throes of a mass restructure, and outstrips its own consensus estimates of a 133 million euro net loss…. Deutsche now anticipates that full-year revenues will be “essentially flat,” offering slightly more optimistic guidance than previous projections.

Indeed, were it not for some pretty hefty loan-loss provisions, Deutsche Bank would have been profitable! For the second-straight quarter! Unlike some people….

Deutsche Bank set aside €761 million ($892 million) to cover potential losses on loans to borrowers hurt by the coronavirus pandemic…. Santander, based in Spain but with operations in Europe, Latin America and the U.S., reported €3.1 billion in credit losses for the quarter. While smaller than in the first three months of the year, the provision added to a massive €12.6 billion charge it took from a lower valuation of some previous acquisitions, which it attributed to the deterioration in the economic outlook caused by the pandemic…. It drove the lender to a second-quarter loss of €11.13 billion.

Barclays also set aside more than a billion to cover loan losses, although Jes Staley is more interested in bringing Edward Bramson’s attention to a different number, while smirking obnoxiously and haughtily.

Barclays's corporate-and-investment bank generated a 31% rise in total income of GBP6.93 billion "driven by a standout performance in markets," the bank said.

Europe’s Banks Take Hefty Charges as Coronavirus Impact Emerges [WSJ]
Deutsche Bank posts earnings beat as restructuring continues amid the pandemic [CNBC]
Barclays profit plunges, books $4.8 billion charge [MarketWatch]


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Jes Staley’s ‘I Told You So’ Tour Rolls On

Barclays had another quarter in which its I-bank wasn’t too embarrassing.

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Jes Staley Really Showed Us

Barclays’ chief gets to keep his investment bank and his job.

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Jeffrey Epstein’s Banker Screws Over Jeffrey Epstein’s Bank

Jes Staley, who once bought a hedge fund with Epstein’s help, is taking his piece of Deutsche Bank’s prime brokerage.

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Jes Staley Doubles Down On Diversification

He loves Barclays investment bank, and he really loves the idea of investment bankers working in back rooms of strip malls in Swindon.

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Not-So-Local Man Decides Not To Add Jes Staley To Unemployment Rolls For Now

But Edward Bramson would love to see a long-dated pink slip with the Barclays CEO’s name on it.

No, wait! Put it back!

Barclays I-Bank Shouldn’t Exist, Does, Is Thusly A Problem

What to do with an unloved business that fails all the Goldilocks tests but still contributes most your revenue?

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Layoffs Watch ’19: Barclays Wants To Be More Like Credit Suisse

And unfortunately for Edward Bramson and the 3,000 of you without jobs, it’s not in the “deemphasize the investment bank” kind of way.