Deutsche Bank reported a bigger-than-forecast quarterly loss of 3.15 billion euros ($3.5 billion), underlining the challenges it faces as it attempts to turn around its struggling business.

Deutsche Bank had this month flagged it would lose around 2.8 billion euros ($3.12 billion) in the quarter when it announced a restructuring plan that will see 18,000 jobs go and cost 7.4 billion euros ($8.25 billion) overall.

The scale of the loss, compared with a profit of 401 million euros ($447 million) a year ago, prompted the bank’s shares to slide as much as 5.8 percent in Frankfurt. The bigger loss stemmed from higher goodwill impairment charges than foreseen when the bank announced its restructuring on July 7, it said.

The bank, Germany’s largest, is considered one of the most important banks for the global financial system, along with US heavyweights JPMorgan Chase, Bank of America and Citigroup.

But Deutsche has been plagued by losses and scandal, prompting it to embark on one of the biggest overhauls to an investment bank since the aftermath of the financial crisis.

Chief executive officer Christian Sewing said Wednesday that the bank had already taken significant steps in implementing the strategy. More than 900 employees had given notice or been told they would be made redundant.

In a note to employees, Sewing said the lender’s underperforming investment bank faced “strong headwinds” in the quarter, including questions about the bank’s future that spooked clients.

“Now we can look ahead with more optimism,” he wrote.

Tale of woe

Deutsche’s troubles peaked with a $7.2 billion US fine in 2017 for its role in the mortgage market crisis, in a major blow that caused clients to flee.

A new leadership, with Sewing at the helm since last year, has tried to revive Deutsche’s fortunes, but problems have persisted.

In April, the bank called off nearly six weeks of talks to merge with crosstown rival Commerzbank.

It then embarked on a plan for “tough cutbacks” to its investment bank, representing a major retreat from investment banking for Deutsche Bank, which for years had tried to compete as a major force on Wall Street.

As it reshapes, the bank expects 2019 revenue to be lower than in 2018. The forecast marks a further scaling down in expectations from previous quarters.

Net revenue in the quarter fell 6 percent to 6.2 billion euros ($6.91 billion). Analysts on average had expected 6.3 billion euros ($7.02 billion) in revenue, according to a consensus forecast posted on the bank’s website.

Revenue at Deutsche’s cash-cow bond-trading division dropped 4 percent in the quarter, while equities sales and trading revenue dived 32 percent.

The declines underscore the continued weakness at the lender’s investment bank, which saw an 18% drop in net revenues during the period.

RBC Capital Markets wrote that Deutsche’s earnings illustrated the “long road until we have visibility on the many stepping stones” to a turnaround.

Among details of the overhaul announced earlier this month, Deutsche said it planned to scrap its global equities business and scale back its investment bank. It also reshuffled management.

The bank will set up a new so-called “bad bank” to wind down unwanted assets, with a value of 74 billion euros ($82.46 billion) of risk-weighted assets.

Reuters reported Tuesday that it will take years to shed those unwanted assets, tying up capital that could have generated income of 500 million euros ($557 million) a year.

Some investors have told Reuters they doubted these moves would be enough to turn around its flagging fortunes in the face of intense competition and low interest rates.

Others investors have said they were worried Deutsche Bank would backtrack on a pledge not to tap shareholders for additional cash, particularly in view of its capital constraints.

“I really can’t say that I see the positives in this plan. I remain a bitter curmudgeon,” said Barrington Pitt-Miller, portfolio manager at Janus Henderson Investors.