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]