By Tom Sims and Matthias Inverardi
FRANKFURT (Reuters) -Deutsche Bank returned to a better-than-expected profit in the second quarter from a year ago despite mixed results at its global investment banking division and a hit from the jump in the euro's value.
Deutsche, Germany's largest lender, on Thursday reported net profit attributable to shareholders of 1.485 billion euros ($1.75 billion) in the quarter, compared with a loss of 143 million euros a year earlier. It is better than analyst expectations
for a profit of around 1.2 billion euros.
The figures come mid-way through a crucial year for Deutsche as it winds up a three-year plan and attempts to meet a series of targets that some analysts doubt it will achieve.
"This puts us on track to meet our 2025 targets," CEO Christian Sewing said of the results.
The loss a year earlier resulted from a large provision for an investor lawsuit, briefly interrupting a long profit streak as the bank recovered from steep losses over the past decade.
The bank's quarterly earnings are part of a flurry of reports from Europe's biggest banks, as investors search for evidence on how banks are weathering a weak economy, a strengthening euro and a trade war.
Deutsche's investment bank, which operates from Sydney to New York, remained the biggest revenue generator in the quarter, though a postponement in deals weighed on the results.
Revenue at the overall division was up 3%, better than expectations for a meagre 0.5% increase.
Within the investment bank, revenue for fixed-income and currency trading, one of the bank's largest businesses, rose 11%, better than expectations for a 3.1% gain. Such revenue was up 14% at JPMorgan and rose 9% at Goldman Sachs.
Origination and advisory, after making big gains last year, saw a drop of 29%, compared with expectations for a 18% decline. Deutsche recently revamped key roles at the division.
($1 = 0.8493 euros)
(Reporting by Tom Sims and Matthias Inverardi, Editing by Rachel More, Miranda Murray and Mrigank Dhaniwala)
