Deutsche Bank has steep Q4 loss of $2.91 bn, Juergen Fitschen, Anshu Jain says biz strong
Deutsche Bank is reporting a large (euro) 2.15 billion ($2.91 billion) loss for the fourth quarter (Q4) because of asset writeoffs and lawsuit expenses, as the bank's new leaders reshape its business to meet regulatory and business challenges.
The bank wrote off the value of investments and businesses it owns as it works to meet new requirements for banks to hold bigger financial buffers against losses. That means exiting some of the bank's risky investments and assets.
It took accounting losses of (euro) 1.9 billion for the fallen value of businesses it had acquired before 2003, and for risky assets and investments that it is in the process of selling off. Expenses for litigation the bank is facing came to (euro) 1.0 billion.
The loss compared to a (euro) 186 million profit a year ago. Revenue rose 14 percent to (euro) 7.9 billion from (euro) 6.9 billion. Analysts surveyed by FactSet expected a bare profit of (euro) 62 million. The bank's full-year net profit fell to (euro) 665 million from (euro) 4.32 billion in 2011. Full year revenue rose to (euro) 33.74 billion from (euro) 33.22 billion.
Co-CEOs Juergen Fitschen and Anshu Jain, who took over from Josef Ackermann last year, said Thursday the performance of the bank's core business was otherwise strong, and management recommended an unchanged dividend to shareholders of 75 euro cents a share.
They said the losses came from ``the most comprehensive reconfiguration of Deutsche Bank in recent times.''
Jain said that the bank's outlook for 2013 is
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