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Banking

Deutsche Bank announces surprise loss

Deutsche Bank has announced a net loss of almost one billion euros, citing litigation costs. The bank said it expects further challenges in the months to come, but that the situation should improve next year.

Germany's biggest bank said January 19 it had recorded a net loss of 965 million euros ($1.3 billion) for the final quarter of 2013.

In a statement made a week ahead of schedule, Deutsche Bank blamed weakening revenue and litigation costs as it announced the figures. Co-CEOs Jürgen Fitschen and Anshu Jain said the bank would still post a net profit - of 1.08 billion euros - for the year as a whole, and sounded an optimistic note about the future.

"We expect 2014 to be a year of further challenges and disciplined implementation," said a statement. "However, we are confident of reaching our 2015 targets and delivering on our strategic vision."

The bank put aside some 2.5 billion euros over the year to address lawsuits filed by EU and US authorities over a range of issues. They include the rigging of lending rates between banks and an alleged covering-up of risk in the US subprime mortgage market.

The Wall Street Journal on Friday had reported that the bank's latest figures would fall well short of expectation, causing shares to drop by three percent at the time.

Deutsche Bank has faced a string of legal issues in recent years, with at least seven of its traders suspended over the lending rate scandal. For that, the bank was hit with a 725-million-euro fine.

The bank last month had to pay 1.4 billion euros for the settling of litigation in the US relating to disclosure over mortgage-backed securities.

The net full-year profit - of 1.08 billion euros - was up from 700-million euros in 2012.

rc/lw (AP, AFP)

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