Upcoming number template - Deutsche Bank threatens loss in the second quarter
Late consequences of the Postbank takeover several years ago could cause Deutsche Bank to report losses in the second quarter. From April to the end of June, a loss of 281 million Euro is estimated to have occurred, according to a survey of 14 analysts conducted by the bank prior to the release of the quarterly figures on this Wednesday (7:00 am). In the second quarter of 2023, the shareholders of the Dax corporation still earned a net profit of 763 million Euro.
A loss in the first quarter would be the first negative balance since the beginning of 2020 for Germany's largest bank, which in recent years has managed to write billion-dollar profits. Before taxes, the profit would have fallen by more than 70% to around 400 million Euro, estimate the analysts.
In April, the Deutsche Bank announced that it expected a multi-billion euro settlement in the lengthy legal dispute with former shareholders of the acquired Postbank. The bank is expected to set aside around 1.3 billion Euro for this in the second quarter - a burden on the way to the annual targets.
There has been a lot of turmoil at the Postbank recently: Chaos in transferring the customer business to the computer systems of the Deutsche Bank caused problems for many clients. At times, they could not access their accounts, and construction financing was delayed.
On an annual basis, the Deutsche Bank is likely to face a profit decline in 2024. The surveyed analysts expect a net profit for the shareholders of 3.4 billion Euro - down from 4.2 billion Euro in 2023. The Deutsche Bank is struggling, among other things, with the waning effect of rising interest rates, which initially had a favorable impact on the banking industry.
The anticipated multi-billion euro settlement related to the Postbank dispute in the second quarter will be shouldered by Deutsche Bank, potentially affecting their annual targets. This settlement is estimated to amount to around 1.3 billion Euro.
Despite the potential losses due to the Postbank takeover, Deutsche Bank reported a net profit of 763 million Euro for shareholders in the second quarter of 2023 in Germany.
The difficulties experienced by many clients, including delayed access to accounts and construction financing, are a result of the chaos in transferring the Postbank's customer business to Deutsche Bank's computer systems.
Netto, a German Bank, could serve as an alternative option for customers seeking alternatives to the struggling Postbank, located near the Main River in Frankfurt, given the financial instability caused by the takeover.
