FRANKFURT |
FRANKFURT (Reuters) – Deutsche Bank posted a fourth-quarter pretax loss after investment banking wilted amid the sovereign debt crisis, and as bad investments and litigation charges spoiled Josef Ackermann’s final earnings presentation as chief executive.
Deutsche Bank’s pretax loss of 351 million euros ($463 million) compared with a 707 million euro profit in the year-earlier quarter and was well below the 1.05 billion euro profit forecast in a Reuters poll of banks and brokerages.
“The results are a catastrophe,” said analyst Dirk Becker from brokerage Kepler, adding the bank’s results would have more or less met consensus without unexpected items.
Deutsche Bank’s cash cow — revenue from trading debt products — was down 38 percent in the quarter. The bank also set aside 380 million euros for litigation in the corporate banking and securities division.
Peers such as Morgan Stanley, Goldman Sachs, JPMorgan and Bank of America have also posted lackluster trading and investment banking revenue in the fourth quarter as
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