Deutsche Bank swings into loss

Deutsche Bank swung to a loss in the third quarter after setting aside $1.1bn to cover the costs of settling investigations of past wrongdoing.

Bloomberg News reports that the net loss in the three months through September was $119.7m compared with net income of $52.2m a year earlier. The bank reported higher-than-estimated revenue from trading fixed income and currencies, its biggest sales generator.

Deutsche Bank, facing mounting legal costs and probes, named Goldman Sachs Group Inc.’s Marcus Schenck on Tuesday to succeed Stefan Krause as chief financial officer in May. The firm is among institutions accused of attempting to manipulate currency markets and said Wednesday that it is in talks with authorities to resolve its role in the industry-wide rigging of benchmark interest rates. It is also under investigation for doing business with countries subject to U.S. sanctions, including Iran.

'The idea that they’re making progress is more important for me' than the size of the legal charge, said Neil Smith, an analyst at Bankhaus Lampe in Dusseldorf. 'I expect there to be another big quarter or two of litigation provisions in the future.'

Hit the link below to access the complete Bloomberg News article:

Deutsche Bank Sinks to Third-Quarter Loss on Legal Costs

Deutsche Bank Names Schenck to Succeed Krause as CFO

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