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Deutsche Bank Cuts 2012 Pre-Tax Income, Hikes US Litigation Provisions
Tom Burroughes
20 March 2013
Deutsche Bank said mortgage-related litigation in the US has led to a
€600 million ($776 million) increase in the amount of provisions for such
action to €2.4 billion, also hitting its net income, as it adjusted figures for
its 2012 results under international financial reporting rules. Germany’s
biggest bank said that "new developments related to specific existing legal
matters have occurred after the disclosure of the bank's preliminary, unaudited
2012 results on 31 January 2013”. “The new developments require provisions concerning US
mortgage-related litigation in some of the bank’s legacy businesses that are
assigned to the non-core operations unit, as well as unrelated regulatory investigations,”
it said in a statement today. The rise in litigation provisions cuts the previously
announced income before income taxes by €600 million to €800 million, and net
income by €400 million to €300 million.