News Column

Deutsche Bank Warns On Q4 Costs, Profits

Dec. 13, 2012
Deutsche Bank

Deutsche Bank shares slumped Thursday after Germany's biggest bank warned that higher restructuring costs would badly hit group profits in the final quarter of 2012.

"We currently expect ... specific items to have a significant negative impact on the bank's earnings" in the fourth quarter, the Frankfurt-based bank said in a statement.

Deutsche Bank said it expected its savings programme along with the scaling back of risks, the revaluation of some asset values and charges from transaction banking operations in the Netherlands to undercut earnings performance.

The announcement sent shares down almost 3 per cent to 33.24 euros (43.5 dollars).

"The fourth quarter 2012 so far was characterized by a continued difficult macroeconomic environment with low volatility and by the usual seasonal slowdown," the bank said.

"Despite this environment, we have achieved solid operational results in October and November across all our core businesses."

The bank also said it had created a separate "noncore" unit worth around 130 billion euros that would initially house risk-weighted assets for disposal.





Source: Copyright 2012 dpa Deutsche Presse-Agentur GmbH


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