Fourth quarter hits Deutsche
Deutsche Bank has flagged another significant loss in the fourth quarter, citing exceptional market conditions and predicting a full-year loss in the order of 3.9 billion euros.
The big German institution said that it currently anticipated a loss after tax in the region of 4.8 billion euros and said this development reflected exceptional market conditions that had severely impacted results in the sales and trading businesses, most notably in credit trading including its proprietary trading business, Equity Derivatives and Equities Proprietary Trading.
It said the result also reflected exposure reduction and other de-risking measures, a significant increase in provisions against certain of its monocline counter-parties, and certain other exceptional gains and charges, including reorganisation charges.
Deutsche said that in asset and wealth management, the bank anticipated a fourth quarter loss driven by an impairment charge on intangible assets related to DWS Scudder and substantial injections into money market funds.
Commenting on the announcement, the chairman of Deutsche’s management board, Josef Ackermann, said it was very disappointed at the fourth quarter result, which had led to a loss for the year.
“The exceptionally difficult market environment of the quarter exposes some weaknesses in our platform, and we have determined a number of measures to address these weaknesses,” he said
AUTHOR
Mike Taylor
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