CARY – Deutsche Bank, which has a major tech outpost in Cary, reported a small net profit of some $60 million in the second quarter as cost-cutting and revenue growth outweighed increased loan losses due to the virus outbreak.
Chief financial officer James von Moltke said that the bank is “fully on track” with a restructuring that is shedding employees and reducing costs.
Last year, Deutsche Bank, which once had nearly 100,000 employees worldwide, started a dramatic overhaul to reduced its workforce by 18,000. At the time, it had around 900 workers in Cary, WRAL TechWire reported.
That number has since dropped to 577, according to the firm’s update on its headcount to the NC Commerce Department in a report earlier this month.
The gain compared with a loss of $3 billion in the year-earlier quarter, when the bank had large expenses related to its ongoing restructuring.
The Frankfurt-based bank said Wednesday it had cut its cost base by 10 percent as it presses ahead with a drawn-out transformation aimed at improving profitability by reducing costs and riskier investments and activities.
The bank said that set-asides for loans that aren’t being repaid rose to some $760 million in the quarter, from approximately $160 million in the same quarter a year ago. Revenues rose 1 percent to $6.3 billion.
Chief financial officer James von Moltke said that the bank is “fully on track” with a restructuring that is shedding employees and reducing costs.
NC halts incentives to Deutsche Bank after hundreds of job cuts in Cary
