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.
