Deutsche Bank just posted a huge €6.8 billion (£5.1 billion, $7.4 billion) loss for 2015 — the first annual loss since 2008.
The German lender confirmed in its 2015 results statement that in the fourth quarter of last year, that it made a €1.15 billion pre tax loss, compared to a net profit of €323 million a year earlier.
This was mainly due to €1.2 billion worth of litigation charges for the period. This brought total litigation charges to €5.2 billion for 2015. This is compared to €2 billion of litigation charges booked in 2014.
But investors expected this huge loss.
Last week, Deutsche Bank warned the markets that it was facing a net loss of around €6.7 billion for last year.
However, restructuring charges tipped the bank’s net loss over this forecast as it cost €800 million the fourth quarter of last year to pay for severance packages after the group decided to close a number of retail banking branches. Another €100 million was lost due to Deutsche Bank hiving off Postbank.
“In 2015 we made considerable progress on the implementation of our strategy. The much-needed decisions we took in the second half of the year contributed to a net loss for the fourth quarter and full year,” said John Cryan, Co-Chief Executive Officer, at Deutsche Bank
“We are focused on 2016 and continue to work hard to clear up our legacy issues. Restructuring work and investment in our platform will continue throughout the year.
“We know that periods of restructuring can be challenging. However, I’m confident that by continuing to implement our strategy in a disciplined manner, we can and will transform Deutsche Bank into a stronger, more efficient and better run institution.”
However, full year revenue rose by 5% to €33.5 billion, up 5 per cent year-on-year. Although, revenue in the fourth quarter cratered by 15% year-on-year to €6.6 billion.
Deutsche Bank will releases its final financial statements on March 11, this year.