This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-38838133
The article has changed 3 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| Deutsche Bank results hit by legal costs | Deutsche Bank results hit by legal costs |
| (35 minutes later) | |
| Deutsche Bank has posted an annual loss of 1.4bn euros (£1.2bn) after being hit by legal costs, although that was down from a loss of 6.4bn euros in 2015. | Deutsche Bank has posted an annual loss of 1.4bn euros (£1.2bn) after being hit by legal costs, although that was down from a loss of 6.4bn euros in 2015. |
| In the final three months of 2016 alone the bank lost 1.9bn euros, mainly thanks to a record penalty in the US. | In the final three months of 2016 alone the bank lost 1.9bn euros, mainly thanks to a record penalty in the US. |
| Earlier this week, it was fined £500m in connection with a Russian money laundering plan. | Earlier this week, it was fined £500m in connection with a Russian money laundering plan. |
| The German banking giant reported a 9% fall in costs and an improvement in the percentage of good quality assets. | The German banking giant reported a 9% fall in costs and an improvement in the percentage of good quality assets. |
| These assets, known as "tier one", rose to a percentage of 11.9%, its strongest in three years. | These assets, known as "tier one", rose to a percentage of 11.9%, its strongest in three years. |
| The bank said it had "proved its resilience in a particularly tough year". | The bank said it had "proved its resilience in a particularly tough year". |
| Profit squeeze | |
| The year was marked by a series of high-profile settlements and fines for a series of misdemeanours. | |
| In the last quarter of 2016 alone, Deutsche increased the amount of money it sets aside for such penalties from 5.9bn euros to 7.6bn. | |
| Its $7.2bn (£5.7bn) US penalty, the largest against any bank, was for fines and compensation for its involvement in the toxic debt crisis of 2008. It was, though, about half than the original sum the US authorities were considering charging Deutsche Bank. | |
| Many major international banks have been penalised for similar practices, and all major banks are also finding conditions tough as regulations tighten. | |
| Persistent low interest rates are another element of the tougher climate for banks, as it is far more difficult to make a profit when the difference in borrowing and deposit rates is so small. | |
| Many banks, including Deutsche, have been cutting jobs and bonuses in response. |