Deutsche Bank Reports Second Year In The Red

Deutsche Bank reports second year in the red

FRANKFURT AM MAIN, Feb 2, (Pakistan Point News - APP - 02nd Feb, 2017 ) - Troubled German banking giant Deutsche Bank on Thursday reported a net loss of 1.4 billion Euros ($1.5 billion) for 2016 as it struggles with the impact of mammoth fines, lower revenues and restructuring costs. The Frankfurt-based lender was last month forced to slash bonus payments for a quarter of employees. Like its rivals, Deutsche continues to face headwinds from low interest rates as well as increased regulation and higher capital requirements introduced in the wake of the financial crisis.

But the lender was also battered by a fresh series of fines in 2016 that took deep bites out of its result. The result is worse than the 200 million euro loss forecast by analysts FactSet, but an improvement on the near-7 billion euro loss recorded in 2015. Looking beyond the net result, Deutsche saw revenues shrink by 10 percent in 2016 compared with the previous year, at just over 30 billion euros. Meanwhile, the bank's underlying, or operating result before interest and taxes was 810 million euros in the red. Deutsche's result also continued to be burdened by provisions the bank has set aside to cover credit risks, which grew 45 percent compared with 2015 to almost 1.4 billion euros. Among other risks, Deutsche is exposed to the struggling shipping sector, which has been floundering since the 2008 financial crisis.