- Deutsche Bank's (DB) shares slide 3.6% in Frankfurt after the bank published its Q4 results early and reported a pretax loss of €1.2B. The figure badly missed consensus for a profit of €628.5M, although it was down from a loss of €3.17B a year earlier.
- DB also warned that it expects "2014 to be a year of further challenges and disciplined implementation," but it is still confident of achieving its 2015 targets.
- Q4 net loss €1B.
- Deutsche Bank's losses were partly caused by reorganization costs, and charges to adjust credit, debt and funding valuations, as well as by litigation.
- Revenue at Deutsche Bank's investment banking and trading unit tumbled 27% to €2.46B, hurt by a 31% drop in bond and other fixed-income trading. That compares with an 8% fall for U.S. banks. Revenue from trading equities rose 8%.
- Tier 1 equity 9.7%.
- Despite the loss, JPMorgan analyst Kian Abouhossein remains bullish. "Deutsche Bank management deserves credit," Abouhossein says. The firm "is still in restructuring mode but management has delivered on our wish-list of aggressive exposure reduction, bringing forward cost savings and settlement of some litigation." (PR)
Deutsche Bank shares sink following loss
Jan 20 2014, 06:10 ET