Deutsche Bank reports loss after four years

Deutsche Bank reported a quarterly loss of 143 million euros in the second quarter, its first quarterly loss in four years. Germany’s largest bank, Deutsche Bank, reported a loss for the first time in four years after making a 1.3 billion euro provision for investor lawsuits in the second quarter. The bank’s 1.3 billion euro ($1.4 billion) provision for long-running investor lawsuits related to the Postbank acquisition reversed a 15-quarter winning streak. Deutsche Bank reported a 143 million euro loss in the second quarter, while analysts had forecast a second-quarter loss of around 280 million euros. Deutsche Bank reported a profit of 763 million euros in the same period last year. Deutsche Bank CEO Christian Sewing reiterated his medium-term commitment to distribute 8 billion euros to shareholders after years of poor returns, even as the Postbank decision casts doubt on Deutsche Bank’s ability to carry out a second buyback this year. Sewing has vowed to boost profitability and raise revenue to 30 billion euros this year, while fee income is expected to offset weaker income from loans. Sewing said the second quarter was well on track to meet its 2025 targets and shareholder distribution commitments. Revenue at both the corporate bank and the private bank, which combines retail and wealth units, fell in the quarter as the headwind from rising interest rates receded. Asset management revenue rose 7%, helping offset some of the decline in lending and brokerage. Revenue at the unit, which advises on deals and stock and bond sales, nearly doubled to 585 million euros, while results at the broader investment bank rose 10%.