Deutsche Bank in Q3 loss due to Postbank charge

AP News
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Posted: Oct 27, 2010 7:01 AM
Deutsche Bank in Q3 loss due to Postbank charge

Deutsche Bank AG, Germany's biggest financial group, reported a euro1.2 billion ($1.7 billion) loss for the third quarter, due to a big charge related to its planned takeover of retail lender Postbank AG.

Deutsche Bank, which had already warned of the loss in September, said Wednesday it had booked a euro2.3 billion write-down for the takeover of Postbank, without which the bank would have posted a net profit of euro1.1 billion.

A year earlier, it had made a net profit of euro1.39 billion. Net revenue fell to euro5.0 billion from euro7.2 billion but would have rise to euro7.3 billion excluding the Postbank charge.

"The third quarter results again prove the robustness of our recalibrated business model despite the difficult ongoing macroeconomic and market conditions," Chief Executive Josef Ackermann said in a statement.

The bank, based in Frankfurt, posted a pre-tax loss of euro1.0 billion, which without the charge related to Postbank would have amounted to a pre-tax profit in line with that for the same period last year of euro 1.3 billion.

Earlier this month, Deutsche Bank completed the largest capital increase in its history, selling new shares to raise euro10.2 billion to help complete the Postbank acquisition.

Shares of Deutsche Bank fell 1.6 percent to euro41.19 in Frankfurt trading after the release.