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.
Hispanic #1 Breaking News for Entrepreneurs, Professionals and Small Business Owners - HispanicBusiness.com
SEPTEMBER 2, 2014
|Customer Service||Policy||Advertise||Site Tools|
|HispanicBusiness Services||Editorial Guidelines||Ad Specifications||Magazine Archive|
|List Rental Agreement||About Us||Media Kits||Post Your Event|
|HireDiversity Job Search||Editorial Calendar||Research|
© 2014 HispanicBusiness Inc. All Rights Reserved.