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Deutsche Bank reports loss
Deutsche Bank posted a fourth-quarter pre-tax loss after investment banking wilted amid the sovereign debt crisis, and as bad investments and litigation charges spoiled Josef Ackermann’s final earnings presentation as chief executive.
Deutsche Bank’s pre-tax loss of 351m euros (£292m) compared with a 707m euro profit in the comparative quarter the previous year.
“The results are a catastrophe,” said analyst Dirk Becker from brokerage Kepler, adding the bank’s results would have more or less met consensus without unexpected items.
Deutsche Bank’s cash cow – revenue from trading debt products – was down 38 per cent in the quarter. The bank also set aside 380m euros for litigation in the corporate banking and securities division.