Deutsche Bank reports loss
Deutsche Bank has reported a surprise loss for the fourth quarter of
2013, after releasing its latest results before they were expected.
Overall Deutsche said it posted a pre-tax loss of 1.153 billion euros
for the final quarter of 2013.
The bank said that litigation costs and restructuring had weighed
heavily on its financial performance. Litigation costs mounted up to 528
million euros (£435.3 million), while revenue fell 16%.
At the end of last week the company's shares closed down 3% in New
York after reports of a profit warning rattled already anxious
investors.
Deutsche Bank - Germany's largest lender - has faced some large
problems in the past 12 months. In December 2013 it agreed to pay 1.4
billion euros to settle a lawsuit with the US Federal Housing Finance
Agency (FHFA).
The lawsuit accused Deutsche Bank of breaking state and federal laws
when it sold financial products backed by mortgage loans to Fannie Mae
and Freddie Mac between 2005 and 2007. Also in December it was among six
banks fined $2.3 billion (£1.4 billion) by the European Commission after
been found guilty of colluding to rig two global interest rate
benchmarks.
Deutsche Bank suffered the largest fine of the six - 725.36 million
euros - over rate fixing.
BBC |