By Eyk Henning
FRANKFURT-- Deutsche Bank AG said Sunday its first-quarter net
profit fell to EUR559 million ($607.8 million) from EUR1.1 billion
a year earlier as hefty litigation costs outweighed near record
revenue.
The German lender's revenue rose 24% to EUR10.4 billion on
strong performances from its investment-banking and asset- and
wealth-management operations. Analysts on average expected net
profit of around EUR770 million and revenue of about EUR8.9
billion.
The consensus estimates were compiled before a Deutsche Bank
statement on Wednesday said the lender would set aside EUR1.5
billion in additional litigation reserves in the first quarter. A
bulk of that sum was to cover a $2.5 billion charge for a
settlement with U.S. and U.K. regulators disclosed Thursday
resolving allegations that Deutsche Bank rigged an interbank
interest rate benchmark, known as Libor.
The bank late Friday gave a preview of its long-awaited new
strategy, confirming earlier reports that it would dispose of its
retail unit Postbank by floating a majority stake on the stock
market or selling it to a rival. Co-chief executives Anshu Jain and
Jürgen Fitschen, as well as strategy chief Stefan Krause, will
present details of Deutsche Bank's overhaul Monday morning.
Write to Eyk Henning at eyk.henning@wsj.com
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