• Germany edition
 
Deutsche Bank bleeds hefty losses
Photo: DPA

Deutsche Bank bleeds hefty losses

Published: 31 Jan 2013 11:45 GMT+01:00
Updated: 31 Jan 2013 11:45 GMT+01:00

Around €2.167 billion in losses in the period from October to December were announced by the bank, compared with a profit of €147 million one year earlier.

At a pre-tax level earnings were also deeply in the red – around €2.569 billion in the October-December period compared with a year-earlier loss of €351 million.

The bottom-line loss was attributable to write-downs of €1.9 billion and litigation-related charges of €1.0 billion, the statement explained.

At the same time, fourth-quarter revenues grew by 14 percent to €7.9 billion, Deutsche Bank said.

Deutsche Bank is currently being investigated over allegations that some of its employees were involved in rigging the Libor and Euribor interest rates.

And one of its co-chief executives, Jürgen Fitschen, is among a number of top-ranking managers under suspicion of being privy to a scheme to avoid paying sales tax in the trading of carbon emissions certificates.

The fourth-quarter loss also dragged down Deutsche Bank's bottom line for the whole of 2012, when net profit declined to €611 million from €4.132 billion the year before, the bank said.

At a pre-tax level, full-year profit slumped to €1.397 billion in 2012 from €5.39 billion in 2011.

Nevertheless, Deutsche Bank said it would pay shareholders an unchanged dividend of €0.75 per share.

In September, the group unveiled deep cost-cutting plans which included a decisive shake-out of risky assets.

While several of the measures "had an expected material impact on our fourth quarter financial results, we are encouraged by the initial results," insisted Fitschen and his co-CEO Anshu Jain.

For example, Deutsche Bank's key Core Tier One capital ratio – a measure of a bank's ability to withstand unforeseen risks – rose to 8.0 percent, from less than 6.0 percent a year earlier and "significantly above our communicated target of 7.2 percent for year-end 2012.

"This development predominantly reflects strong delivery on portfolio optimisation and de-risking of non-core activities, as well as model and process enhancements," the two CEOs said.

AFP/jcw

The Local (news@thelocal.de)

Your comments about this article

20:05 February 2, 2013 by raandy
I would like a second opinion.
Today's headlines
Germany beefs up asylum rules for Balkans

Germany beefs up asylum rules for Balkans

Germany made it harder Friday for people from Bosnia-Herzegovina, Macedonia and Serbia to apply for asylum after lawmakers classified the three Balkan countries as safe, with respect for basic rights. READ  

German Muslims rally against extremism
Muslims pray in Kreuzberg, Berlin, on Friday outside a mosque which was damaged in an arson attack. Photo: DPA

German Muslims rally against extremism

Muslims across Germany held a day of prayers and rallies on Friday to condemn both Islamic extremism and a backlash against their faith that has seen arson attacks on mosques. READ  

German military flight to Iraq starts with a hiccup
The trainers on the air strip in Hohn, Schleswig-Holstein. Photo: Bundeswehr.

German military flight to Iraq starts with a hiccup

Military trainers flew to northern Iraq from Germany on Friday, ahead of a huge delivery of weapons from the German military, but things didn’t initially go as planned. READ  

Munich gets four Euro 2020 matches
Photo: DPA

Munich gets four Euro 2020 matches

UPDATE: Munich will play host to four Euro 2020 games, European football’s governing body Uefa announced in Geneva on Friday, but London was the real winner. READ  

Driver, 18, ploughs into school pupils
The scene by the bus stop outside the school in Diepholz. Photo: DPA

Driver, 18, ploughs into school pupils

An 18-year-old drove into a group of students outside a school in western Germany on Friday morning, injuring several. READ  

View from Germany
'In a globalized world we don't need more loners'
'No' campaign supporters celebrate in Edinburgh after the results were announced. Photo: DPA

'In a globalized world we don't need more loners'

UPDATE: The German government welcomed the result of the Scottish independence referendum on Friday, with Foreign Minister Frank-Walter Steinmeier calling it the "right decision". READ  

Oktoberfest 2014
Your guide to Munich Oktoberfest's beer
Photo: DPA

Your guide to Munich Oktoberfest's beer

The Local's Oktoberfest guide chugs some of the Bavarian tipple fueling this whole shindig. READ  

Berlin squat ripped apart by fire
Kreuzberg's Cuvrybrache. Photo: DPA

Berlin squat ripped apart by fire

UPDATE: One of Berlin’s biggest squats was torn apart by a fire on Thursday night following an argument. READ  

Sterilized woman gets pregnant, sues doctors
Photo: DPA

Sterilized woman gets pregnant, sues doctors

A woman who gave birth after becoming sterilized has tried and failed to sue the hospital which carried out the operation. READ  

Thousands queue for Apple's iPhone 6
Queues outside the Apple Store in Dresden. Photo: DPA

Thousands queue for Apple's iPhone 6

UPDATE: Apple’s new iPhone 6 went on sale on Friday morning, leading to long queues outside stores across Germany. Berlin's Apple Store sold out of the iPhone 6 Plus in an hour. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
Photo: DPA
Culture
Your guide to Munich Oktoberfest's tents
Photo: DPA
Hamburg
Drunk teachers ruin school trip to Hamburg
Marks & Spencer
Sponsored Article
Fashion Ladies of the Local: Win a New Autumn Look
Photo: DPA
Gallery
Oktoberfest 2014: The best and worst in dirndl fashion
Photo: Shutterstock
Gallery
Ten German words you'll never want to hear again
Photo: DPA
Education
German universities tumble in global rankings
Photo: Shutterstock
Business & Money
The three types of firms hiring foreigners
Photo: DPA
Berlin
Frisky couple shock Berlin commuters
Sponsored Article
Bilingual education from nursery to graduation at Phorms
Photo: DPA
Business & Money
JobTalk: All you need to know about working in Germany
National
Share news tips with The Local Germany
Latest news from The Local in Austria

More news from Austria at thelocal.at

Latest news from The Local in Switzerland

More news from Switzerland at thelocal.ch

Latest news from The Local in Denmark

More news from Denmark at thelocal.dk

Latest news from The Local in Spain

More news from Spain at thelocal.es

Latest news from The Local in France

More news from France at thelocal.fr

Latest news from The Local in Italy

More news from Italy at thelocal.it

Latest news from The Local in Norway

More news from Norway at thelocal.no

Latest news from The Local in Sweden

More news from Sweden at thelocal.se

3,343
jobs available
Toytown Germany
Germany's English-speaking crowd