Deustche Bank revised fourth-quarter earnings downward,
setting aside about €600 million ($773 million) in legal provisions for U.S.
mortgage litigation in another sign that mounting legal liabilities are cutting
into investment -bank profits, WSJ reports.. The bank updated its
fourth-quarter net loss to 2.54 billion euros, wider than the originally
reported loss of €2.17 billion. According to a WSJ report this compared with a profit of €147 million a
year earlier.
The bank also reiterated that it would make first-quarter
targets for a key measure of the bank’s health known as the capital ratio,
indicating a strong first quarter, analysts said. Deutsche Bank has now set
aside €2.4 billion for litigation, with additional identified non-provisioned
legal risks of €1.5 billion. The bank’s legal provisions were nearly 10 times
net profit of €237 million for 2012, compared with a profit of €4.1 billion in
2011. Total legal risk is likely much higher than what the bank has publicly
identified, analysts told WSJ.
No comments:
Post a Comment