Deutsche Bank posted a fourth-quarter loss that exceeded analyst estimates, after the company eliminated more than 1,400 jobs and set aside $1.35bn for legal expenses.
Bloomberg reports that the loss of $2.94bn, the biggest in four years, was about eight times larger than the consensus analyst forecast.
Co-Chief Executive Officers Juergen Fitschen and Anshu Jain are restructuring operations and bolstering capital levels, the lowest among Europe’s biggest investment banks, in their first year in charge to help meet stricter banking rules.
Costs associated with job cuts and litigation countered an increase in trading revenue, spurred by the European Central Bank’s steps to stem the sovereign debt crisis.
The loss 'reflects a number of decisions we took to position Deutsche Bank', Jain said in the earnings statement. 'We’ve galvanized Deutsche Bank around the achievement of our capital targets'.
Deutsche Bank had eliminated 1,400 of 1,500 positions slated to be cut at the investment bank and related support areas by the end of December, Chief Financial Officer Stefan Krause said.
Hit the link below to access the complete Bloomberg article:
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