Deutsche Bank In 'Guarded Profit Warning'

Deutsche Bank - External

Deutsche Bank has said fourth-quarter profit will be “significantly” reduced as it offloads riskier assets and faces higher restructuring costs.

The costs will include valuation adjustments and charges related to global transaction banking in the Netherlands, the lender said in a statement to the Frankfurt stock exchange today. Deutsche Bank was expected to post net income of $670m in the period, according to the average estimate of four analysts compiled by Bloomberg.

'We currently expect these specific items to have a significant negative impact on the bank’s earnings in the fourth quarter', it said. The period 'was characterized by a continued difficult macroeconomic environment'.

'This is a guarded profit warning', Lutz Roehmeyer from Landesbank Berlin Investment, said by telephone from Berlin. 'Until now, Deutsche Bank followed a policy of reducing leverage as little as possible. This has changed now'.

Hit the link below to access the complete Bloomberg article:

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