Deutsche Bank Expects $7B Losses after Charges For The Third Quarter

0
Deutsche Bank Expects $7B Losses after Charges For The Third Quarter

Deutsche Bank is expecting to report a net loss of €6.2 billion (approximately $7 billion) after charges for the third quarter of this year.

Deutsche Bank estimated an IBIT loss of approximately €3.3 billion and a net loss of €4.8 billion year-to-date through the third quarter.

Excluding the impact of the impairment of goodwill and intangibles, its IBIT loss would be approximately €200 million and the net loss would be around €400 million.

Gates Capital Returns 32.7% Tries To Do “Fewer Things Better”

Gates Capital Management's Excess Cash Flow (ECF) Value Funds have returned 14.5% net over the past 25 years, and in 2021, the fund manager continued to outperform. Due to an "absence of large mistakes" during the year, coupled with an "attractive environment for corporate events," the group's flagship ECF Value Fund, L.P returned 32.7% last Read More

Deutsche Bank expects to remain profitable year-to-date until the third quarter with IBIT of approximately €2.5 billion and net income of approximately €900 million.

The global investment bank also disclosed that its management board will recommend a reduction or possible elimination of the common share dividend for the fiscal year 2015. Deutsche Bank said the move was part of the planning for the implementation of its Strategy 2020.

The stock price of Deutsche Bank declined more than 4% to $27.50 per share during the extended hours, around 4:55 in the afternoon in New York.

Deutsche Bank huge write-down

Deutsch Bank said its third quarter financial performance will be affected by a huge write down including a €5.8 billion of goodwill and certain intangibles related to its Securities (CB&S) and Private & Business Clients (PBC) divisions.

The global investment bank also incurred a €600 million impairment of the carrying value of its 19.99% stake in Hua Xia Bank Co. Ltd. Deutsche Bank said its holding was no longer strategic.

Additionally, Deutsche Bank said its litigation provisions are worth approximately €1.2 billion. The bank expected that majority of the amount are not tax deductible. It is also anticipating that its final litigation provisions in the quarter will be affected by further events prior to the release of its final results for the third quarter.

Deutsche Bank regulatory capital ratios

According to Deutsche Bank, the impairment of goodwill and intangibles as well as its Hua Xua investment has no material impact on its regulatory capital ratios.

It is currently expecting to report a fully-loaded CRR/CRD4 Common Equity Tier 1 ratio of around 11% for the third quarter. The expected regulatory capital ratio included the impact of European Banking Authority Regulatory Technical Standards (Prudential Valuation) adopted during the period.

Updated on

Marie received her Bachelors Degree in Mass Communication from New Era University. She is a former news writer and program producer for Nation Broadcasting Corporation (NBC-DZAR 1026), a nationwide AM radio station. She was also involved in events management. Marie was also a former Young Ambassador of Goodwill during the 26th Ship for Southeast Asian Youth Program (SSEAYP). She loves to read, travel and take photographs. She considers gardening a therapy.
Previous article How To Define Your Service Model
Next article Bankrupt 50 Cent Sues The Lawyers He Believes Responsible For His Financial Woes

No posts to display