Deutsche Bank quarterly loss at €2.6-bn on scandal charges
01 February 2013
Deutsche Bank suffered a €2.6-billio ($3.5 billion) quarterly loss after taking charges aimed at drawing a line under a series of scandals and a clean up of its balance sheet going to shareholders for cash.
According to Germany's biggest lender, the pretax loss was partly due to a €1-billion-euro hit to cover legal risks, including its potential exposure to an industry-wide scandal involving the fixing of benchmark interest rates.
It also announced a €1.9-billion impairment charge on underperforming assets, shifting them to a "non-core" division for potential run down or sale for partly strengthening its capital position and avoiding a rights issue.
"We have been very consistent. We have said we do not believe it is in our shareholders' best interests. We have shown that we are willing to take pain," co-chief executive Anshu Jain told a conference call when asked about a possible rights issue.
"This said, clearly, it is a very uncertain world. There is a plan B. We will not rule out any option that is in the best interest of Deutsche Bank."
Globally banks across the world are cutting costs and selling or writing off weaker assets as they try to meet tougher capital rules aimed at averting a repeat of the 2008 financial crisis.