Deutsche Bank AG (USA) (NYSE:DB) reported its earnings early this morning, posting net losses of $2.94 billion during the last quarter but exceeding its goal for Core Tier 1 capital ratio under Basel rules. The bank’s ratio was 8 percent, but it had aimed for 7.2 percent in the fourth quarter. The bank expects to reach a ratio of 8.5 percent by the end of the next quarter.
Deutsche Bank AG (USA) (NYSE:DB) (ETR:DBK) posted mixed results in its earnings report early this morning. The bank is the largest in Europe according to assets, and it exceeded one import goal but posted net losses. It announced earlier this month that it was cutting pay for some of its employees.
In this morning’s earnings report, Deutsche Bank AG (USA) (NYSE:DB) (ETR:DBK) said its Core Tier 1 capital ratio, which is an important measure of a bank’s financial strength, under Basel 3 rules rose 8 percent within the past three months, going past the bank’s 7.2 percent target. The banks reported that it’s on track to reach an 8.5 percent Core Tier 1 capital ratio by the end of March.
However it posted a net loss of $2.94 billion during the quarter, which was the largest in the past four years. The bank also cut over 1,400 jobs and reserved $1.36 billion for legal fees in the last quarter. Deutsche Bank AG (USA) (NYSE:DB) (ETR:DBK) is currently restructuring in order to get into compliance with the new, stricter Basel 3 bank regulations.
It saw trading revenue go up, but the costs of cutting jobs and dealing with litigation erased that revenue. Deutsche Bank is going through a number of legal issues at the moment, including an investigation on accusations of rigging Libor rates. Other losses were from businesses the bank purchased prior to 2003, like the U.S. firm Bankers Trust and Scudder.
The bank said it plans to keep its 2012 dividend at $1.02 per share. Shares of Deutsche Bank AG (USA) (NYSE:DB) (ETR:DBK) were up .5 percent in pre-market trading at the New York Stock Exchange and 1 percent in Frankfurt. The bank’s stock initially climbed almost 3 percent in Frankfurt.