Deutsche scraps full-year profits target

 
City A.M. Reporter
Deutsche Bank said its full-year target of 10 billion euros (£8.6bn) before tax is no longer within reach as the European sovereign debt crisis takes its toll on global markets.

Germany's flagship lender will also take impairment charges on Greek sovereign debt of about 250 million euros and cut about 500 jobs, mainly outside its home market, it said in a statement on Tuesday.

Analysts had expected lower earnings than the 10 billion euros pretax profit from core businesses, excluding one-off factors, that Deutsche Bank had previously forecast.

Since September, half the 34 analysts following Deutsche Bank have revised their full-year earnings estimate downward, by an average of 10.3 percent, Thomson Reuters Starmine shows.

Deutsche Bank was seen posting a 2011 pretax profit of 7.72 billion euros, according to Starmine's SmartEstimate. That included one-off charges, and corporate investments, areas Deutsche Bank has excluded from its target definition.