Another year, another year of losses at Deutsche Bank.
In mitigation, Deutsche Bank’s worse than forecast annual loss of €497m ($620m) arose as a result of a one-off US tax reform charge of €1.4bn.
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John Cryan, Deutsche Bank CEO said: “In 2017 we recorded the first pre-tax profit in three years despite a challenging market environment, low interest rates and further investments in technology and controls. Only a charge related to US tax reform at the end of the year meant that we had to post a full-year after-tax loss.
“We believe we are firmly on the path to producing growth and higher returns with sustained discipline on costs and risks. The Postbank merger and partial flotation of DWS are both advancing well. We have made progress, but we are not yet satisfied with our results.”
Deutsche Bank’s pre-tax profit for fiscal 2017 of €1.3bn compares with a pre-tax loss in 2016 of €810m.
Full year revenue in 2017 fell by 12% to €26.4bn; around one-half of the decline arose from strategic business disposals including Hua Xia Bank, Abbey Life and Private Client Services in 2016. Deutsche Bank’s agreement to sell a portion of its retail business in Poland and losses from country exits also negatively impacted revenues in 2017.
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By GlobalDataOn the costs side, analysts will highlight missed targets with Deutsche now forecasting costs in 2018 of €23bn against its target of €22bn.
