Financial Results

Deutsche Bank Says Expects To Report Q4 Loss As Charges, Restructuring Costs Bite

Tom Burroughes Group Editor London 21 January 2016

Deutsche Bank Says Expects To Report Q4 Loss As Charges, Restructuring Costs Bite

Germany's biggest bank said yesterday that it expects to book a loss for Q4.

Deutsche Bank, which is due to announce full-year and fourth quarter results for 2015 next week, yesterday said it expects to post a Q4 loss because of a number of costs.

The loss will be caused by expected litigation charges of approximately €1.2 billion ($1.3 billion), the majority of which are not anticipated to be tax deductible, Germany's largest bank, which has announced a number of management changes and restructuring moves in recent months, said yesterday. These provisions are preliminary and may be further changed by events before publication of the bank’s annual financial statements on 11 March 2016, it said. The bank is to issue results on 28 January.

There are also restructuring and severance charges of €800 million, largely related to the private and business clients segment.

The bank expects to report full year 2015 revenues of €33.5 billion. As a result of the above charges, the bank expects to report a full year 2015 loss before income taxes of approximately €6.1 billion and a net loss of approximately €6.7 billion.

Challenging market conditions in the quarter contributed to a year-over-year decline in fourth quarter revenues, principally in corporate banking and securities, the bank said.

 

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