Deutsche Bank Q3 profit slides 94%

Deutsche Bank - External

Deutsche Bank, Europe’s largest investment bank by revenue, said third-quarter profit slid 94% after it set aside $1.65bn to cover expected legal costs and income from debt trading fell.

Bloomberg reports that net income in the three months through September dropped to $56.4m from $1.03bn in the year-earlier period, the bank said in a statement on its website today.

Deutsche Bank co-Chief Executive Officers Anshu Jain and Juergen Fitschen have been forced to make provisions to settle legal probes over their firm’s alleged role in rigging interbank lending rates and lawsuits related to the U.S. housing market. The company is among investment banks experiencing a slowdown in fixed-income trading, a key portion of their earnings, as investors wait to see whether the Federal Reserve will begin reducing bond purchases.

'The size of the litigation charge was surprising', Andrew Stimpson, an analyst at Keefe, Bruyette & Woods who has an outperform recommendation on Deutsche Bank shares, said by telephone from London. 'Hopefully they will report settlements soon. Once that happens, investors can relax somewhat'.

To access the complete Bloomberg article hit the link below

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