Deutsche Bank posts $2 billion loss in fourth quarter as litigation costs weigh
Source: CNBC
Deutsche Bank posts $2 billion loss in fourth quarter as litigation costs weigh
Silvia Amaro @Silvia_Amaro
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5 Hours Ago, 2017: 4:02 AM ET
Embattled German lender Deutsche Bank posted a net loss of 1.9 billion euros ($2.05 billion) for its fourth quarter, missing analyst expectations, but reported improved results for the whole of 2016 in what has been a trying year for the bank.
Deutsche Bank's full-year net loss was 1.4 billion euros, versus a net loss of 6.8 billion euros in 2015, with chief executive John Cryan saying that the bank "finished 2016 with pleasingly strong capital and liquidity ratios." However, shares of the bank sunk 3 percent as the European session opened Thursday, with the fourth-quarter results disappointing investors. Shares extended losses by 9.00 a.m. London time to trade 6 percent lower.
The earnings release showed that charges totaled 5.8 billion euros last year, including 2.9 billion euros in the fourth quarter alone. It said these were related to impairments of goodwill, the sale of its Abbey life insurance business, restructuring and de-risking, and litigation costs which totaled 1.6 billion euros in the last quarter of 2016.
It said liquidity reserves were 218 billion euros at year-end, after standing at 200 billion euros at the end of the third quarter 2016. The bank's core capital ratio - a gauge of the bank's capital buffers - was 11.9 percent at the end of 2016, compared to 11.1 percent in the third quarter{.}
Read more: http://www.cnbc.com/2017/02/02/deutsche-banks-full-year-net-loss-narrows-to-146-billion-in-2016-versus-73-billion-in-2015.html
I started to link to CNN but their ANNOYING LOUD AUTOPLAY VIDEO infuriated me.