Even positive surprises don’t appear to be welcome at Deutsche Bank these days.
For weeks, most analysts had been predicting losses in the hundreds of millions for the bank in the fourth quarter. But Germany’s largest financial institution on Thursday surprised them with a profit before taxes of €253 million, or $285 million, and net income after taxes of €441 million. The news sent the stock price up almost three percent, to the joy of the bank’s otherwise beleaguered shareholders.
But there could be a hangover to the party. Germany’s Federal Financial Supervisory Authority, BaFin, signaled to Handelsblatt that it would be investigating the situation. It wants to examine whether or not the bank should have communicated the numbers in advance – analysts had calculated that the bank would book losses at almost the same level of its now achieved profits.