Deutsche Bank (DB) has reported a quarterly loss for the first time in four years – however, the marginal miss was a little less than what an LSEG poll predicted. This depletion can be attributed to provisions for the ongoing lawsuit regarding the Postbank division.
Deutsche Bank Reports First Quarterly Loss in Four Years
Germany’s foremost lender indicated that it will not engage in another share buyback this year. When trading closed on Wednesday 24 July 2024, the bank was 8.32% in the red.
According to a CNBC report, a €143m net loss applied to investors. The stated poll predicted a net loss of €145m. The firm warned of this drop due to the Postbank provision. Investors alleged that Deutsche Bank shorted them during its takeover of Postbank in 2010.
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On Wednesday 24 July 2024, the institution confirmed that the Postbank issue totalled approximately €1.3bn. In a CNBC interview, Deutsche Bank’s chief financial officer, James von Moltke, commented:
On the share repurchase side … unfortunately, prudently we had to step back from the idea of a second repurchase this year, what our focus is now is building excess capital through the back of the year.
The bank’s revenue reports reflected a checks-and-balances image. The investment banking division’s year-on-year revenue spiked by 10%, but was down 3% in fixed income and currencies. CNBC indicated that corporate banking revenue was “nearly flat” at €1.9bn.
Analysts hailed this as a solid performance despite the higher-than-expected losses. Von Moltke said that there are multiple positives going into the last part of this year, and spotlighted the bank’s interest income, which dropped by 2% in corporate banking.
