Bank earnings: Barclays, Deutsche beat forecasts
STORY: Europe’s big banks seem to be shrugging off a turbulent few months for the sector.
Deutsche Bank said Thursday (April 27) that first quarter profits hit almost $1.3 billion.
That was up on last year, and well ahead of forecasts.
Revenue came in strong for corporate and retail banking.
That made up for a slide in investment banking income, which was hit by a global slump in big dealmaking.
Now Deutsche says it will cut jobs as part of a new savings drive.
800 posts will go, with the cuts focused on senior non-client facing roles.
Barclays beat expectations too.
Its profit came in at $3.24 billion, helped by a strong performance at its credit card business.
Income at that division rose by almost a half.
But there were signs that the boom could have a sting in its tail.
Barclays sharply raised its provision for bad loans, which it blamed mainly on U.S. credit cards.
The broader mood in the sector remains wary, following turmoil sparked by U.S. bank failures and the emergency rescue of Credit Suisse.
Even so, Barclays shares were up close to 5% by early afternoon Thursday, with Deutsche up over 3%.