Deutsche Bank

Regulators Take Aim

Deutsche's Anshu Jain: Smiling, but for how long? Source: DPA
Deutsche's Anshu Jain: Smiling, but for how long?
  • Why it matters

    Why it matters

    Deutsche Bank could face additional fines if a regulator finds it violated rules saying companies should give advance warning of profits that are well outside market expectations.

  • Facts

    Facts

    • Analysts forecast a net loss of hundreds of millions of euros in the fourth quarter, primarily misjudging the bank’s legal costs.
    • The surprising positive earnings figures sent the stock price up almost three percent.
    • The bank’s co-CEOs are still preparing the employees for hard times ahead.
  • Audio

    Audio

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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.

Deutsche Bank Investment Banking 1-01

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