Deutsche Bank’s legal issues haven’t all been one-way traffic.
Bloomberg News reports that the bank, which has posted two consecutive annual losses amid rising misconduct fines, booked a surprise windfall of more than $117 million in the first half related to an out-of-court settlement with a former billionaire who had sued the bank’s wealth management unit Sal. Oppenheim, according to people familiar with the matter.
The gain, reflecting the release of provisions for the case, contributed to a fourfold jump in Deutsche Bank’s first-half profit to about 1 billion euros. Litigation provided a positive effect of 57 million euros in the first half, while it cost the bank 308 million euros in the same period the year before, according to a company presentation last month that didn’t break down what caused the unusual gain.
The December agreement with Madeleine Schickedanz, who lost her fortune in the 2009 insolvency of retailer Arcandor AG and claimed she was poorly advised, ended a high-profile dispute dating back to 2012. Deutsche Bank didn’t book the gain until this year, in part because a judge only signed off on the settlement in February, one of the people said. The bank and its auditor decided against restating the 2016 annual report and released the reserves in the first half instead, the people said.
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