German banking major Deutsche Bank has posted a record net loss of EUR6bn for the third quarter of 2015 primarily due EUR5.8bn in non-cash charges for the reduced value of its investment bank and Postbank.

The lender has also booked a EUR649m charge as it wrote down its 19.99% stake in China’s Huaxia Bank as well as EUR1.2bn in additional litigation charges.

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The bank has now announced plans to lay off 9,000 employees and exit 10 countries as part of its strategy to restore profitability.

As a part of the strategy, the bank will withdraw from Argentina, Chile, Mexico, Uruguay, Peru, Denmark, Finland, Norway, Malta as well as New Zealand.

According to Deutsche Bank co-CEO John Cryan, the measures are expected to generate gross cost savings of about EUR3.8bn ($4.6bn).

In addition, the bank plans to slash about 6,000 external contractor positions by 2020, and sell assets with 20,000 more workers over the next 24 months. It is also planning to move trading operations from Brazil to global and regional hubs.

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The group’s revenues dropped 7% to EUR7.33bn in the third quarter from EUR7.86bn in the year ago quarter. Noninterest expenses increased 80% year-on-year to EUR 13.2bn.

The bank also said that its litigation reserves increased by EUR1bn to EUR4.8bn.

Commenting on the bank’s performance, Cryan said: "In the third quarter 2015 we reported a record net loss – a highly disappointing result that was largely driven by items we had already flagged earlier in October.

"Our Common Equity Tier 1 ratio nonetheless rose slightly to 11.5% and our Leverage Ratio remained stable at 3.6%, partly reflecting lower risk weighted assets and leverage exposures, and our decision not to recommend a dividend for the year. Revenues in core businesses held up, despite mixed business conditions during the quarter with market volatility in August and September."