Sunday 29 January 2017 1:52 pm

Deutsche Bank forecast to be in the red for 2016, with a net loss of almost €1bn predicted

Deutsche Bank is predicted to announce it is almost €1bn (£850m) in the red when it releases its full year results for 2016 on Thursday morning. 

A consensus of analysts has forecast the German banking giant will report a net loss of €910m for the full year and €1.6bn for its fourth quarter.

However, some analysts are predicting a full year loss as steep as €2.8bn and a quarterly loss as low as €3.3bn.

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Analysts are more positive on Deutsche's longer-term future, predicting the bank will be back in the black with net income of €767m for the full year of 2017 and €2.6bn for 2018. The 2016 forecast also represents an improvement compared with the €6.8bn loss the bank reported in 2015, its first annual loss since 2008

The bank finalised a $7.2bn (£5.7bn) payment with the US Department of Justice earlier this month – made up of a civil penalty of $3.1bn and provide $4.1bn in consumer relief – for mis-selling mortgage-backed securities, having agreed the settlement in principle last December

Last month, the bank revealed the payout would set it back $1.2bn in its accounts for the fourth quarter of 2016.

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Although hefty, the financial hit is modest compared with the $14bn the bank was at one point threatened with. Shares sunk after the potential size of the fine was revealed last September, although they have since recovered. 

The bank also announced earlier this month that one in four of its staff would be receiving no individual bonus for their efforts in 2016, although they were still eligible for reward via the company's "group" bonus pool, which is calculated based on the bank's financial position rather than based on individuals' targets.