Deutsche Bank to Cut Jobs After Q2 Profit Plunge

Deutsche Bank (NYSE:DB) announced that its second-quarter earnings dropped to $811 million, down 46% compared to last year. The German banking giant said its retail banking operation saw pretax profits fall 13% during the quarter, down to 398 million euros, The New York Times noted.

Pretax profits at Deutsche Bank’s investment banking unit plummeted by 63% compared to last year, down to 357 million euros.

Euro Crisis Is Bad News for U.S. Banks
Euro Crisis Is Bad News for U.S. Banks

Shares of Deutsche Bank edged up fractionally in Tuesday afternoon trading in New York.

Overall revenues during the second quarter dropped by 6% to 8 billion euros. Bank officials noted that operational earnings had been hurt by the decline in the euro relative to the U.S. dollar. They also attributed the drop in investment banking profits to rising investor concerns over the European debt crisis.

Responding to the results, the bank announced that it would trim its payroll. It’s planning a total of about 1,900 job cuts, with roughly 1,500 of those coming from the investment banking unit. Compensation packages are also under review as part of cost-cutting efforts, bank officials said.

In contrast to Deutsche Bank, most U.S. banks, including Citigroup (NYSE:C), JPMorgan Chase (NYSE:JPM), Wells Fargo(NYSE:WFC) and Bank of America (NYSE:BAC) have reported improved second-quarter results.

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