Deutsche Bank's share price rises despite warning of huge quarterly loss and reduced dividend payment

 
Sarah Spickernell
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The bank has become embroiled in the Libor rigging scandal
The bank has become embroiled in the Libor rigging scandal (Source: Getty)

Deutsche Bank's share price has gone up despite this morning's warning to investors that it expects to post a €6.2bn (£4.5bn) loss in its third quarter results.

Germany's biggest bank said its dividend payment for the full year could be reduced or suspended, as write-downs at its corporate banking unit take their toll.

Along with difficulties at its investment bank, it is also uncertain about the amount it will receive through the sale of its Postbank retail division.

Read more: Deutsche Bank cutting 23,000 jobs

An impairment will be taken by the bank on its 20 per cent stake in the Hua Xia Bank, which it plans to sell. It expects this write down alone to amount to €598m.

The bank, which has become embroiled in the Libor rigging scandal, also said it had put €1.2bn aside to cover legal costs it is likely to face.

Final results for the quarter will be posted on 29 October.

Shares fell 1.9 per cent when markets opened this morning, but have since risen 2.53 per cent to €26.12.

Over the last year, the bank's shares have declined by around 14 per cent.

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