AGENCE FRANCE PRESSE
Published — Saturday 15 December 2012
Last update 16 December 2012 9:41 am
FRANKFURT: Deutsche Bank, Germany’s biggest lender, has warned that its fourth-quarter earnings will take a big hit from restructuring costs.
The reporting period from October to December was “so far characterised by a continued difficult macroeconomic environment with low volatility and by the usual seasonal slowdown,” Deutsche Bank said in a statement.
“Despite this environment, we have achieved solid operational results in October and November across all our core businesses,” it said.
“However, our fourth-quarter results will include a number of one-off items,” it cautioned, citing its cost-cutting program and the cost of integrating its Postbank unit, as well as negative impacts from portfolio adjustments and writedowns. “Our year-end closing activities including impairment reviews and the review of provisioning levels, are still ongoing.
“However, we currently expect these specific items to have a significant negative impact on earnings in the fourth quarter,” Deutsche Bank wrote.
The bank said it had also completed its plans to place 122 billion euros ($ 160 billion) worth of non-core assets into a separate “non-core operations unit or NCOU,” which became operational in November.
Deutsche Bank also reiterated its goal to achieve a so-called Core Tier 1 ratio — a gauge of its financial strength — of “at least 8.0 percent by the end of the first quarter of 2013.”
The profit warning hit Deutsche Bank shares, which were the biggest losers on the Frankfurt stock exchange, showing a loss of 2.74 percent in a stable to slightly softer market.