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Legal costs lead to quarterly net loss at Deutsche Bank

Legal costs lead to quarterly net loss at Deutsche Bank
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Deutsche Bank has reported a net loss in the third quarter.

The 92 million euro loss by Germany’s top lender was because it has had to put aside money for expected fines and settlements.

It is facing a long list of lawsuits and investigations.

US, German and British regulators are looking into possible attempts at interest-rate and foreign exchange benchmark manipulation, high-frequency trading, possible violations of American sanctions on Iran and other activities.

The bank also saw only a modest rise in earnings from its investment banking operations during the quarter.

Deutsche Bank spent 894 million euros on litigation costs in the quarter. In total, it has spent around seven billion euros on fines and settlements since 2012.


The announcement of the loss comes one day after the bank reshuffled and expanded its management board by naming a Goldman Sachs banker as chief financial officer and creating a new board role to sharpen the bank’s focus on resolving its legal problems.

“There continues to be significant uncertainty about the timing and size of potential impacts” of litigation, Chief Financial Officer Stefan Krause said in a conference call with analysts.

Krause is to take on a new board position in charge of group strategy and will be replaced by Marcus Schenck, the London-based Goldman Sachs investment banker and former and finance chief at German energy group E.ON.

Deutsche Bank has reorganised its management board will be expanded with the addition of Christian Sewing, who will devote himself primarily to resolving legal issues.

See also: is Deutsche Bank on the right track?

with Reuters

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