Before her radical change of contaminated sites Deutsche Bank have again spoiled the balance sheet. Especially for defeats in court proceedings the Bank had over a billion euros Reset.
In the first quarter, net profit fell by 49 percent to 559 million euros, as the Institute announced in Frankfurt on Sunday. Earnings attributable to shareholders surplus halved compared to the same period last year to 544 million euros. The bank had already announced last week, to cover an additional 1.5 billion euros for legal defeats. Thus the legacy made once the upturn in daily business naught.
The revenue improved, thanks largely to rising trading business almost almost a quarter to 10.4 billion euros, reaching near-record levels. “We will launch the next phase of our strategy from a position of strength,” said the two CEO Anshu Jain and Jürgen Fitschen. The results showed that the institution is much stronger than it took office in 2012.
However, once again, the high cost of legacy left deep traces in the balance sheet. Because of their involvement in the Libor scandal manipulated interest rates to British and American authorities had condemned on Thursday the bank to make a payment of 2.5 billion dollars. It was the highest ever fine against an international money house and in this case more than last thought.
Therefore, the Bank had the legal provisions for losses increase to 4.8 billion euros. There are also other risks of 3.2 billion euros, for which no reserves were built. Majority of outstanding concerns cases are still windy shops in securitized mortgages in the United States from the time of financial crisis.
How many competitors benefited the German bank at the beginning of the robust growth in trading activity in financial markets. Faced with new uncertainties about the looming interest rate reversal in the US and the monetary policy in the euro area coated offensive investors their money stronger. It deserve banks with strong commercial orientation as the German bank.
But in the other divisions were going well. Thus, increased its retail business that wants to shrink much the bank with the separation of the Postbank, its pre-tax profit despite historically low interest rates by almost 13 percent to 536 million euros. Almost doubled its earnings and asset management in business transaction, there was growth. “This demonstrates our capabilities across all core business lines,” Jain and Fitschen said.
The fact that they now plan still hard cuts in the Bank is due to the increasingly stringent requirements of regulatory authorities around the world.
This particularly affects institutions with a high total assets as the German bank. In the first quarter of the sum of all assets of the banking house climbed back to almost two trillion euros.
That’s 250 billion euros more than the end of next exchange rate effects, 2014. The reason was also the expanded business in the face of brisk trade events in the financial markets.
For the bank, a high total assets, however, is a heavy burden because they must
the plants with more equity inferior -. and that costs a lot of money. So worsened in the first quarter of the so-called leverage ratio of 3.5 to 3.4 percent. That is to say, one hundred euro in the balance sheet were covered with 3.40 euros own money. This is after a multibillion dollar of capital a year ago in an international comparison was still a rather low value. Financial Supervisors intend to look more at this rate and tighten their regulations further. Therefore, the Bank intends to streamline future