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Deutsche Bank says to post 6.2b euro loss in Q3
[BERLIN] Deutsche Bank warned on Thursday that it would post a net loss of 6.2 billion euros (S$9.83 billion) in the third quarter and that dividends for the year may be scrapped.
The bank said it would book a charge of 5.8 billion euros in impairments, "largely driven by the impact of expected highly regulatory capital requirements... as well as current expectations regarding the disposal of Postbank." The group was also setting aside 1.2 billion euros to meet litigation costs.
Deutsche Bank is embroiled in the Libor rigging scandal and is being investigated by Swiss authorities for suspected price fixing on the precious metals market.
The bank further took a hit of 600 million euros in the value of its almost 20 per cent stake in Hua Xia Bank.
In what appeared to be a confirmation of reports that it was intending to dispose of the China-based bank holding, Deutsche Bank said there had been a "change of the intent of the holding" and that it "no longer considers this stake to be strategic".
The group added that it would have to slash or even eliminate dividends for the year.
Deutsche Bank is due to publish its third quarter results on October 29.