Germany’s largest bank has to set aside billions in a long legal dispute over the Postbank takeover. This has spoiled the second quarter. But day-to-day business is running smoothly.
Deutsche Bank has slipped into the red due to the long-term effects of the Postbank takeover more than ten years ago. Operationally, however, things went a little better than analysts expected. The bottom line was a loss of 143 million euros in the second quarter, as the DAX group announced in Frankfurt on Wednesday.
It was the first quarterly loss since the beginning of 2020. Analysts surveyed by the bank had expected a loss of this magnitude. A year ago, the bank earned 763 million. The reason for the red figures was a 1.3 billion euro provision announced at the end of April for a possible additional payment to former Postbank shareholders.
In contrast, operations went well. Revenues and pre-tax profits adjusted for legal costs increased. At the end of April, the bank announced that the purchase of Postbank could have expensive consequences. In the lengthy legal dispute with former shareholders of the acquired institution, the group is preparing for a supplementary payment. However, the provision has no effect on the bank’s strategic plans or financial goals. The bank confirmed its goals for the current and coming year.
Source: Stern
