Deutsche Bank has reported a surprise fourth-quarter loss, hurt by legal costs and accounting charges.
Bloomberg News reports that the bank had a pretax loss of $1.56bn on $714m in litigation-related expenses, as well as costs tied to its reorganization and charges to adjust credit, debt and funding valuations, the firm said in a statement.
Deutsche Bank is putting aside funds to settle probes and lawsuits that include allegations it deceived clients about products linked to U.S. mortgages and that its traders attempted to rig benchmark interest rates. The firm is spending money to improve controls, reduce headcount and move staff to cheaper locations as part of a plan to increase profitability.
'It is quite a messy result filled with legal and restructuring costs, which Deutsche would call as one-offs', said Chad Padowitz, who oversees about $105m in international equities as chief investment officer of Melbourne-based Wingate Asset Management. 'The biggest challenge for Deutsche and its European counterparts is to find avenues for growth'.
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