BERLIN, July 27 (Xinhua) -- Deutsche Bank AG, Europe's largest investment bank, released disappointing figures for its revenue in the second quarter of 2017 on Thursday.
The Frankfurt-based financial institution recorded a 10 percent decline of revenues down to 6.62 billion euros (7.74 billion U.S. dollars) in Q2, the weakest quarter in three-and-a-half years.
An analyst consensus compiled by the bank had forecast substantially higher revenues of 7.15 billion euros.
"Revenues were not as universally strong as we would have liked it, in large measure because of muted client activity in many capital markets. As we modernize our bank we are turning our focus onto building profitable growth," a statement by CEO John Cryan read.
Investment banking was a particular weak spot, where earnings of the reorganized unit fell by 16 percent as trading and transaction banking income shrunk. Deutsche Bank warned that revenues of its operating businesses would decline this year.
The news prompted Deutsche Bank's shares to fall by 3.7 percent to 15.98 euros, the steepest fall in over four months.
Back in March, Cryan had expressed his desire to achieve "modest growth" by focusing more on corporate clients and the bank's German roots. Deutsche Bank has announced three turnaround plans in as many years.
The financial institution had recorded its weakest yearly revenue in 2016 for six years, forcing it to raise an additional 8 billion euros to calm fears that it would be unable to pay misconduct fines.
Despite lasting weak revenue development in Q2 2017, however, Deutsche Bank more than doubled pre-tax profits in the same period.
Pre-tax profits rose to 822 million euros compared to 408 million euros last year, well ahead of analysts' expectations of 199 million euros. A substantial year on year fall in costs to 5.717 billion euros (15 percent) allowed the bank to surpass profit forecasts.
"Despite the significant improvement, this level of profitability falls short of our longer-term aspirations," Cryan said. Deutsche Bank is mid-way into a five-year corporate restructuring plan.
