Saturday, 17 August 2013

Deutsche Bank earnings sag on lawsuit provisions

The Deutsche Bank headquarters sign is on display
Photo by Mario Tama/Getty Images






German lender Deutsche Bank has announced that its second-quarter bottom-line earnings fell significantly, disappointing investors. The bank blamed the result partly on resources it had to set aside for lawsuits.

Deutsche Bank reported that its net profit dropped by nearly 50 percent in the second quarter. Earnings fell to 335 million euros ($445 million) from 666 million euros in the same period a year earlier.

Bottom-line profit was lowered in no small way by expenses for lawsuits against the company. The lender continued to face legal challenges related to US mortgage bonds and a scandal over the rigging of a key interest rate benchmark by a number of banks.

Deutsche Bank reported that it had set aside an additional 630 million euros to cover lawsuit-related losses, bringing the total to some 3 billion euros.

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