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)