By William Wilkes 

FRANKFURT-- Deutsche Bank AG said Wednesday it would substantially limit bonus payments for 2016 following a costly settlement with the U.S. Department of Justice.

"Now that we have a clearer idea of the financial impact of the settlement with the U.S. Department of Justice and our performance for the year, we feel that tough measures are unavoidable," the bank's management board said in a letter to staff that was later posted on its website.

The lender said the decision wouldn't affect all employees, but that staff with the corporate titles of vice president, director and managing director won't receive any individual variable compensation for the financial year 2016.

Germany's largest bank late Tuesday completed a $7.2 billion settlement with the U.S. Justice Department involving mortgage securities.

The bank said it considered "tough measures are unavoidable...especially true at a time when thousands of jobs are being cut and our shareholders are not receiving an annual dividend," the bank said.

Write to William Wilkes at william.wilkes@wsj.com

(END) Dow Jones Newswires

January 18, 2017 09:19 ET (14:19 GMT)