Deutsche Bank's share price fell this morning after Germany's biggest lender reported its first annual loss since 2008 - a figure even bigger than was expected.
The German lender has posted a full year loss of €6.8bn (£5.1bn) - more than the €6.7bn that had been trailed - with fourth quarter losses of €2.1bn.
Litigation charges played a large factor in this, with €1.2bn chalked up in the fourth quarter alone - though this figure could still change. Total for the year stood at €5.2bn, compared with €2bn in 2014.
Revenues in the fourth quarter were €6.6bn, down 15 per cent year on year, primarily as a result of a decline in Deutsche Bank's corporate banking and securities division, as well as mark-to-market losses in its non-core operating unit.
Full year revenues were up, however, rising five per cent to €33.5bn. At a constant currency basis, they were slightly up.
Although investors had been braced for bad news, Deutsche Bank's share price dropped 1.5 per cent in early trading.
Why it's interesting
The bank, whose share price has tumbled over the last year, had warned that it would be publishing a hefty loss today, so investors have had plenty of time to get their heads around it, but the figure is slightly higher than the €6.7bn predicted just last week.
Deutsche Bank is in the middle of a restructure, which will seek to address some of the fundamental issues at play. Earlier this week, it emerged that the lender could be cutting bonuses for staff including investment bankers by as much as 30 per cent as it looks to shake up the way the company is managed.
It has also warned that up to 1,000 London-based jobs could be at risk as it scales back on its investment bank.
What Deutsche Bank said
Co-chief executive John Cryan said: “In 2015 we made considerable progress on the implementation of our strategy. The much-needed decisions we took in the second half of the year contributed to a net loss for the fourth quarter and full year.”
He added: “We are focused on 2016 and continue to work hard to clear up our legacy issues. Restructuring work and investment in our platform will continue throughout the year.”
He concluded: “We know that periods of restructuring can be challenging. However, I’m confident that by continuing to implement our strategy in a disciplined manner, we can and will transform Deutsche Bank into a stronger, more efficient and better run institution.”
Cryan is yet to take on the reins fully (that happens in May) but investors are expecting big changes under the new leadership to ensure Deutsche Bank is brought back on track.