Deutsche Bank has returned to profit in Q3 2020, driven by bond trading and cost-cutting measures, despite the Covid-crisis upending markets.

Q3 Highlights

The German bank’s profit attributable to shareholders stood at €182m in the three-month-period ending September 2020, compared to a loss of €942m a year ago.

Total net revenues decreased 13% to €5.94bn from €5.26bn over the period.

The bank also lowered its loan loss provisions in Q3 2020 to €273m.

The performance of the group was driven by Investment Bank, where net revenues surged 43% to €2.4bn. Net revenues in Fixed Income & Currency (FIC) Sales & Trading jumped 47% to €1.8bn.

The unit’s pre-tax profit was €957m in Q3 2020, compared with €64m in the prior year.

Private Bank

In Private Bank, net revenues remained almost unchanged at €2bn. Net revenues in the Private Bank Germany rose 1% to €1.3bn while International Private Bank’s net revenues dropped 2% to €755m.

Private Bank Germany and International Private Bank reported net inflows of €1bn and €2bn, respectively.

Deutsche Bank CEO Christian Sewing said: “In the fifth quarter of our transformation, we not only demonstrated continued cost discipline, but also our ability to gain market share.

“Our more focused business model is paying off and we see a substantial part of our revenue growth as sustainable. Our balance sheet strength and high quality risk management enable us both to support clients in challenging times and to take advantage of new business opportunities.”

Deustche Bank has been in the midst of a major overhaul after several failed turnaround initiatives to improve profitability.

The restructure resulted in 18,000 redundancies and exiting of equities sales & trading business.

The bank has also sharpened its focus on wealth management.