The costs will include valuation adjustments and charges related to global transaction banking in the Netherlands, the lender said in a statement to the Frankfurt stock exchange today. Deutsche Bank was expected to post net income of $670m in the period, according to the average estimate of four analysts compiled by Bloomberg.
'We currently expect these specific items to have a significant negative impact on the bank’s earnings in the fourth quarter', it said. The period 'was characterized by a continued difficult macroeconomic environment'.
'This is a guarded profit warning', Lutz Roehmeyer from Landesbank Berlin Investment, said by telephone from Berlin. 'Until now, Deutsche Bank followed a policy of reducing leverage as little as possible. This has changed now'.
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