Deutsche Bank reported a significant net loss in its fourth quarter on charges and weak Global Markets revenues with lower client activity. Net loss, however, were narrower than last year.
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For the fourth quarter, net loss was 1.89 billion euros, narrower than loss of 2.13 billion euros in the year-ago period.
The latest quarter's results reflect litigation charges of 1.6 billion euros and the impairment of goodwill and other intangibles of 1.0 billion euros.
Pre-tax loss for the quarter was 2.42 billion euros, compared to last year's loss of 2.70 billion euros.
POST forecast was loss of $1.40 per share, net loss of $1.6 billion, and revenus of $7.7 billion.
Net revenues for the quarter increased 6 percent to 7.07 billion euros from 6.64 billion euros last year. Revenues included a gain of 0.8 billion euros from the sale of the bank's stake in Hua Xia Bank Ltd. Excluding this gain, revenues declined 5 percent.
In the quarter, Global Markets segment's net revenues declined 3 percent year-over-year to 1.5 billion euros, with weak Equity Sales & Trading revenues. Corporate & Investment Banking revenues grew 2 percent. Postbank net revenues climbed 34 percent, mainly driven by prior year adjustments
Provision for credit losses was 492 million euros, 30 percent higher than last year, mainly resulted from higher provisions for the shipping portfolio in Corporate & Investment Banking.
For fiscal 2016, net loss narrowed to 1.4 billion euros from last year's 6.8 billion euros, and revenues fell 10.3 percent to 30 billion euros. The results reflected a challenging market environment, persistent low interest rates, Deutsche Bank-specific pressures and strategy execution.
On Wednesday, Deutsche Bank said it reached settlement with UK, New York authorities to pay a $425 million fine for violations of New York anti-money laundering laws involving a "mirror trading" scheme among the bank's Moscow, London and New York offices that laundered $10 billion out of Russia. ■