Every indication is that the coming earnings season is going to be another one of massive profit bleed for major banks. Citigroup may report a loss of $10 billion or more, and now Deutsche Bank says it will lose $6.33 billion amid an “exceptionally difficult environment” during the quarter.
That environment, apparently, “exposed some weaknesses in our platform,” which must be a euphemism for something pretty bad.
WSJ: Germany’s largest bank by market capitalisation also said it expects a Tier 1 capital ratio of around 10% for the fourth quarter, and that the ratio reflects a quarterly dividend accrual of 50 European cents a share for 2008.
In midmorning trading in Frankfurt, Deutsche Bank shares were down €1.82, or 7.5%, at €22.45, underperforming the wider market, which was down 1.6%.
Fourth-quarter results reflect “a number of corrective adjustments” to the bank’s “platform,” upon which the management board decided during the quarter, the bank said, adding that further measures will follow in 2009.