Deutsche Bank falls short of expectations on legal charges

A €630m increase in litigation reserves and weak revenues from debt trading pushed Deutsche Bank’s second quarter pre tax profits below analyst expectations.

The German bank reported a pre-tax profit of €792m (£684m), compared to expectations of €1.3bn. Net income nearly halved, falling to €335m from €666m. Earnings per share for the second quarter was €0.32.

However, net revenues grew to €8.215bn from €8.020bn thanks to strength in corporate banking & securities and its core banking businesses.

Chief executives Jürgen Fitschen and Anshu Jain said:

In the second quarter our core businesses performed well, our franchise remained strong, and we continued to reconfigure our platform to serve our clients more effectively.

Deutsche's results stand in stark contrast to UBS's good results also out this morning, as well as forecast beating results from US banks like Goldman Sachs, JP Morgan and Bank of America.