The largest bank on the territory of Germany – Deutsche Bank AG reported a loss over the third fiscal quarter. The banks result comes after it set aside €894 million ($1.1 billion) to cover the past misconduct investigations costs.
The co-Chief Executives of Deutsche Bank, Jürgen Fitschen and Anshu Jain, said in a statement, cited by the Wall Street Journal: “Net income in this quarter was materially impacted by provisions as we continued to work toward resolution of litigation matters related to legacy issues.”
According to Deutsche Banks statement, its net loss over the third quarter of the financial year amounted to €94 million ($119.7 million), in comparison to a net profit of €41 million over the same period a year ago. Still, the banks revenue generated from trading fixed income and currencies turned out to be larger than the one that was initially expected.
The bank reported an increase in its pre-tax profit over the three months ended in September. The pre-tax profit rose from €1 million in the same period a year earlier and reached €266 million due to the fixed-income operations of the lender. The result was in line with initial analysts forecasts. Deutsche Bank also said that its net revenue over the third financial quarter increased from €7.75 billion in the same quarter last year to €7.86.
The co-Chief Executive Officers of the Germanys largest lender also warned that the regulation costs are still affecting the bank in a negative way.
Neil Smith, an analyst at Bankhaus Lampe, commented on the companys report for Bloomberg: “The idea that they’re making progress is more important for me. I expect there to be another big quarter or two of litigation provisions in the future.”
Deutsche Bank AG lost 1.11% to trade at €24.97 per share as of 9:56 GMT, marking a one-year decrease of 27.70%. The company is valued at €34.83 billion. According to the Financial Times, the 30 analysts offering 12-month price targets for Deutsche Bank AG have a median target of €31.15, with a high estimate of €38.20 and a low estimate of €23.70. The median estimate represents a 23.37% increase from the last price of €25.25.
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