Deutsche Bank’s City of London offices in London, UK, on July 2, 2024
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Deutsche Bank The company ended its 15th consecutive quarter of profits on Wednesday with a smaller-than-expected loss as it set aside provisions for ongoing litigation at its Postal Bank unit.
Net loss attributable to shareholders was 143 million euros ($155.1 million), while a survey of LSEG analysts had forecast a loss of 145 million euros.
Germany’s largest bank had previously said the quarter would be hit by Postbank provisions, which it confirmed on Wednesday would amount to 1.3 billion euros. A long-running lawsuit filed by investors accuses Deutsche Bank of underpaying for the retail banking giant in 2010.
Deutsche Bank reported a 2% increase in net income in the second quarter to 7.6 billion euros, while efficiency savings amounted to 1.5 billion euros.
Revenue from its investment banking unit increased 10% year-on-year to 2.6 billion euros.
Second-quarter results maintained the bank’s trend of better-than-expected profits. Back in April, the bank reported a 10% profit increase, its best quarterly performance since 2013.
Deutsche Bank came under criticism at home last week, with German regulators accusing it of incorrectly disclosing deferred tax assets in its 2019 financial statements that did not comply with international accounting standards.
German regulator BaFin estimates that Deutsche Bank’s U.S. operations have about 2.076 billion euros worth of deferred tax assets that have not yet been separately disclosed in the notes.
This breaking news story is being updated.
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