Deutsche Cuts Profit After Increased Legal Provisions

Deutsche Bank - Foyer

Deutsche Bank has cut its reported profit for 2012 after setting aside additional money to cover legal costs linked to U.S. mortgage lawsuits and other regulatory probes.

Bloomberg reports that the bank has increased the reserves by 33% to $3.1bn, lowering 2012 profit after tax by about $518m to $377m, the Frankfurt- based bank said in a statement Wednesday.

The firm reiterated its dividend and capital targets. Christian Streckert, a spokesman, declined to give further details on what prompted the decision.

'Deutsche Bank has had to be very careful about litigation given that they’re really in the firing line from investors and regulators on this', Christian Hamann, an analyst at Hamburger Sparkasse who is advising clients to sell the share, said by telephone from Hamburg, Germany. 'They were probably too optimistic when they presented the preliminary numbers, but one can see from the share price that the market isn’t concerned as the targets were confirmed'.

Hit the link below to access the complete Bloomberg article:

Deutsche Bank Cuts 2012 Profit on Litigation Reserves

Goldman Sachs Said to Hire UBS’s Jordan to Be Moscow Co-Head

Goldman Sachs’s Scialla Twins Leave for Home-Design Firm

JefferiesAnd the Best Place to Work in the global financial markets 2018 is...

Register for HITC Business News