Germany's biggest bank Deutsche Bank reported a
fourth quarter net loss of 2.15 billion euros (3 billion dollars)
after high restructuring and legal costs hit the group's earnings.
The bigger-than-expected loss in the three months to the end of
December compared with a profit of 186 million euros in the same
period in 2011.
Analysts polled by dpa-AFX had forecast a quarterly loss of 331
million euros.
The loss came after the bank launched a restructuring of its
business as part of efforts to meet new requirements for banks to
boost their financial buffers against losses.
The bank said set aside 2.9 billion euros for costs, including 1
billion euros for possible legal risks.
In a statement, the bank co-chief executives Anshu Jain and
Juergen Fitschen said the bank was undertaking its "most
comprehensive reconfiguration in recent times."
In September - four months after they look over as chief
executives - Jain and Fitschen unveiled plans for cutting costs by
4.5 billion euros each year until 2015.
"We embarked upon the path of deliberate but sometimes
uncomfortable change," they said. "Simultaneously, we set the bank on
course for fundamental cultural change."
Speaking later at a press conference, Jain said: "We are willing
to take the pain; we are willing to take the costs."
The quarterly results caps a horror year for Deutsche with
prosecutors launching raids on the lender's headquarters as part of
long-running legal investigations.
The flagship German lender has also found itself caught up in the
global probe into attempts to manipulate benchmark interest rates.
The bank's shares gained 1 per cent to 37.51 euros in early
trading in Frankfurt following the release of the results.
Jain told reporters that investors appeared to be comfortable with
the losses and the "tough and avoidable decisions" made by the bank.
Bank finance chief Stefan Krause also told the press conference
that Deutsche had enjoyed a good start to the year with both
investment banking and retail banking turning in respectable
performances.
Quarterly revenue rose 14 per cent to 7.9 billion euros from 6.9
billion euros, Deutsche said.
Deutsche's full-year earnings dropped 85 per cent from 4.3 billion
euros in 2011 to 665 million euros last year. Revenue rose to 33.7
billion euros in 2012 from 33.2 billion euros in 2011.
The bank proposed its dividend would be unchanged at 75 cents.
