Deutsche Bank faces €92m loss over soaring legal cost
German bank Deutsche Bank has announced a net loss of €92 million (£72.6m) in the three months to September following legal costs of up to €894 million (£706 million) for various investigations it was involved with.
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In publishing its third quarter report for 2014, Deutsche Bank revealed an income taxes of €266 million (£210 million) and a net loss of €92 million. Much of this loss has been blamed on the legal cost of investigations.
In July, it had emerged the bank was being investigated along with the Bank of Nova Scotia and HSBC for having allegedly fixed the price of silver. Deutsche Bank is also involved in the alleged manipulation of a benchmark interest rate – the London interbank rate, or Libor. It is also being investigated by US regulators.
Jürgen Fitschen and Anshu Jain, co-chief executives of the bank, said, “Net income in this quarter was materially impacted by provisions as we continued to work toward resolution of litigation matters related to legacy issues. We also incurred costs of adapting to new regulation, elevating our systems and control frameworks to best in class, and investing in growth in our core businesses.
“Looking ahead, near-term headwinds persist. Europe’s macro-economic outlook faces challenges, and geopolitical risks continue to create uncertainties. In the coming quarters, we will continue to work systematically through our strategic agenda: resolving outstanding litigation matters, completing the task of adapting our platform to new regulation, finalising our investments in Operational Excellence (OpEx), and reaping the benefits of investments in core business growth.”
The bank also announced that chief financial officer Stefan Krause will be replaced by Marcus Schenck, Goldman Sachs partner and former chief financial officer of energy giant E.ON.
Photo: Elliot Brown via Flickr
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