DEUTSCHE Bank’s turnaround efforts are being hindered by mounting litigation costs, as the giant investment bank’s profits are increasingly being used to pay the bills.
It set aside another €894m (£706m) for litigation in the third quarter, pushing the bank to a net loss of €92m for the three months.
In the same period of 2013, it made a profit of €51m.
Revenues improved by two per cent on the year to €7.9bn.
Corporate banking and securities revenue jumped nine per cent to €3.1bn, largely on the back of a 15 per cent improvement in debt and sales trading.
Its private and business clients revenue edged up three per cent to €2.4bn.
Non-interest expenses fell 3.7 per cent to €7.3bn, and co-chief executive Anshu Jain said Deutsche had hit its €3.9bn cost savings target three months early.
“The litigation provisions had a significant impact on profitability,” said Jain. “We are working towards a resolution… but we recognise the timings are not solely in our control.”
But chief finance officer Stefan Krause warned more costs could be on the way: “We are reserved for known topics. Some topics are further down the process than others. Forex is not far down the process.”
Deutsche Bank’s shares closed the day down at €24.65.