Deutsche Bank warns of large loss

Deutsche bank-business news-people re-el magazine

8 October 2015

Tags:business, business news  financial news, business finance, small business websites


Deutsche Bank has warned investors it will post a net loss of €6.2bn (£4.5bn) for the third quarter.

Higher capital requirements for its investment bank were partly responsible for the huge impairment charges of €5.8bn.

There was also doubt about the value of its Postbank retail division that Deutsche plans to sell.

Germany’s biggest bank also said the dividend for the year could be cut or scrapped.

The group was also setting aside €1.2bn for legal costs.

Deutsche is embroiled in the Libor-rigging scandal and is being investigated by Swiss authorities for suspected price-fixing on the precious metals market.

Analysts had expected a net profit of about €1bn for the third quarter before the unexpected announcement on Wednesday night.

The bank also wrote down by €600m the value of its 20% stake in Hua Xia Bank, which it also plans to sell as it was no longer considered to be strategic.

The writedowns would not affect Deutsche’s capital ratio, which stands at an expected 11% for the third quarter when measured by the most stringent test that is part of new European bank rules.

New chief executive John Cryan, who took over in July, is preparing to cut about 23,000 jobs – about a quarter of the workforce – in a bid to reduce costs, it was reported last month.

Deutsche Bank is due to publish its full third-quarter results on 29 October.

Tags:business, business news  financial news, business finance, small business websites

Source

 


 

 

Business see also….

 

Volkswagen US boss told about emission cheat in 2014

8 October 2015

Volkswagen US-business news-people re-el magazineVolkswagen’s US boss has admitted he was aware early last year of the emissions cheating affecting millions….read more

 

 


China cautiously welcomes Trans-Pacific free trade deal

6 October 2015

China cautiously-business-people re-el magazineChina has cautiously welcomed a free trade deal struck between 12 Pacific Rim countries, the biggest in decades….read more

 

 


The VW scandal – the unanswered questions

4 October 2015

VW-business-people re-el magazineAs Volkswagen’s reputation continues to be damaged by the revelation that it cheated emissions tests,….read more

 

 


Ralph Lauren hires Old Navy executive to replace him as CEO

30 September 2015

Designer Ralph Lauren greets the crowd after presenting his Spring/Summer 2016 collection during New York Fashion Week in New York, September 17, 2015. REUTERS/Lucas Jackson

American designer Ralph Lauren, who built a fashion powerhouse on luxury designs inspired by country club chic,….read more

 

 


Shell to cease further exploration in Alaska

28 September 2015

A cyclist rides past a sign showing the prices of gas at a filling station in San Francisco, California July 22, 2015. REUTERS/Robert Galbraith

Royal Dutch Shell Plc (RDSa.L) said it would cease exploration activity in offshore Alaska for the….read more

 

 

 


Categories