Deutsche Bank shares fall after surprise loss

Deutsche Bank shares fell 5% on Monday morning after Germany's biggest lender rushed out a statement over the weekend announcing a surprise €1.15bn (£950m) pre-tax loss for the fourth quarter.

The bank published its quarterly figures over the weekend after heavy speculation that annual profit would fall short of forecasts.

The bank's performance was dragged down by falling revenues at its fixed-income and currencies businesses. As a result, income at Deutsche's corporate and securities arm fell 27% in the final quarter of the year.

Deutsche also said it was affected by large litigation and restructuring costs and that 2014 would be a difficult year.

Shares in the UK's big banks, which are due to report full-year results in the next few weeks, fell on the back of Deutsche's woes. Royal Bank of Scotland and Barclays, which have sizeable fixed-income businesses, were both down 1.3% in early morning trading with Lloyds Banking Group and HSBC falling less than 1%.

Deutsche has been dogged by a stream of lawsuits and regulatory actions. Litigation cost the bank €528m in the final quarter of the year, taking its annual total for fines and settlements to €2.5bn.

The bank's joint chief executives, Jürgen Fitschen and Anshu Jain, said: "2013 was the second successive year in which we have invested in the bank's future growth and in further strengthening our controls while addressing legacy issues. These factors impacted our financial results."

Powered by article was written by Sean Farrell, for on Monday 20th January 2014 10.06 Europe/London © Guardian News and Media Limited 2010


image: © David Blackwell

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