An unpleasant surprise analysts characterize the results announced by Deutsche Bank for the fourth quarter of last year. The German bank reported a loss of 1.15 billion, mainly due to the high cost of litigation and reorganization. The administration even warned that 2014 will be a year of challenges. The announcement by Deutsche Bank says it will reach its profitability targets for 2015, but warned that 2014 will be difficult. We believe that 2014 will be a year of new challenges and disciplined implementation, said the bank’s management.
The cost of legal problems touched the 528 million in the quarter. Note that the fined 1.9 billion from the U.S. regarding the securitized mortgages that led to the financial crisis, and 725 million in the EU for its role in the scandal manipulation interbank market. Its revenues also decreased by 16% in the quarter, reaching 6.58 billions, mainly due to the weakness recorded in investment banking department, but the downward trend in bond markets.
Also, Deutsche Bank proceeds to deleverage program projected to reduce its balance sheet by 250 billion euros, amid suffocating pressure from regulators. For 2013, Deutsche Bank announced pre tax profits of 2.07 billion euros. Net income rose to 1.08 billion euros from 315 million euros the previous year.
By Nicole P.