Deutsche Bank surprised the market on Thursday by reporting a €619m ($676m) pre-tax profit for the third quarter.

Revenues of €7.5bn between July and September were higher than the €7.3bn achieved a year ago.

Third quarter net income totallled €278m, a major turnaround compared to a loss of €6bn in the prior period.

Deutsche's Global Markets division, which combines the firm's debt and equity sales and trading businesses, performed well with net revenues were €2.6bn, a 10% increase from the prior year period.

Analysts had feared the worst for Germany’s largest lender, which as has been hit by unprecedented sell-offs and lost over half of its stock market value in just a year.

The firm has also announced massive job cuts ahead of a $14bn fine from the US Justice Department around its former sales practices regarding mortgage-backed securities.

UBS equity analyst Daniele Brupbacher described Deutsche’s third quarter statement as a “relieve, at least in the short-term.”

“Revenues, costs, pretax profit as well as net profit was materially above our estimates and consensus,” the analyst wrote in a note to clients on Thursday.

Brupbacher had predicted a third quarter net loss of €611m ($666m) for the firm.

Deutsche Bank chief executive John Cryan said the discussions with the US Justice Department in the context of the RMBS case are “ongoing and constructive”.

He added that negative perceptions concerning the business have developed and led to a reduction in some business volumes and asset outflows.

Revenue from the bank’s asset management arm declined 8% from the prior year period to €628m.

This was put down to lower active and passive management fees, while revenues from alternatives were lower.

The firm’s Corporate & Investment Banking (CIB) unit posted €2bn of revenue in Q3, a 1% decline from the prior year period.

The CIB division includes cash management, M&A advisory, IPOs custody and risk management.

Also included in the CIB unit is the transaction banking unit, which saw revenues fall 5% in the period due to low interest rates.