Deutsche Bank’s fourth-quarter profit fell far short of expectations. But the reason was the 6.3 billion euros of costs from restructuring its investment division and consolidating retail bank Deutsche Postbank as well as wealth manager Sal. Oppenheim.
Pre-tax profit at Germany’s flagship lender was just 700 million euros but analysts said the restructuring could help it get closer to meeting tough earnings targets this year.
“Deutsche Bank is loading the fourth quarter with higher cost charges to get a clean start in 2011 and get as close as possible to their targets,” said Victor Moftakhar, chief investment officer at mutual-fund manager Deka, which is one of Deutsche’s top five shareholders.