Deutsche Bank Sees Big Loss on Write-Down in Corporate Banking -- Update
October 07 2015 - 5:08PM
Dow Jones News
By Josh Beckerman
Deutsche Bank AG warned it expects to record a third-quarter
loss of about 6.2 billion euros, partly tied to a huge write-down
in its corporate banking and securities segment.
Germany's largest bank, which has lagged behind rivals in terms
of profitability, share price and capital adequacy, said the
charges are driven by the impact of expected higher regulatory
capital requirements and its disposal of its retail unit Postbank ,
along with a smaller write-down of its 19.99% stake in Chinese
lender Hua Xia Bank Co. and 1.2 billion euros in litigation
provisions.
It also said it will consider reducing or eliminating its common
dividend for fiscal 2015.
Deutsche Bank said earlier this year that it would hive off its
mass retail unit Postbank and slash assets at its investment bank
as it seeks to boost its profitability and share price.
The company has struggled to boost revenue at Postbank and reap
benefits from integrating it. New banking rules, ultralow interest
rates and fierce competition in Germany's retail-banking market
additionally worked against Deutsche Bank's plans with
Postbank.
Deutsche Bank has indicated that it no longer considers its
stake in Hua Xia to be strategic and previously indicated that it
could sell the stake.
Write to Josh Beckerman at josh.beckerman@wsj.com
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(END) Dow Jones Newswires
October 07, 2015 16:53 ET (20:53 GMT)
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