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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