Late consequences of takeover - Deutsche Bank writes loss due to Postbank reconciliation
The German Bank slipped into the red figures more than ten years after the Postbank takeover due to the after-effects. Operatively, however, it ran better than analysts had expected. The bank reported a loss of 143 million Euros in the second quarter, as the Dax group announced in Frankfurt on a Wednesday.
This was the first quarterly loss since the beginning of 2020. Analysts questioned by the bank had anticipated a loss of this magnitude. A year ago, the bank had earned 763 million Euros. The reason for the red figures was an announced 1.3 billion Euro provision for a possible payment to former Postbank shareholders.
However, the operational business was running smoothly. The earnings and the tax profit, adjusted for litigation costs, were positive. The bank had announced at the end of April that the acquisition of Postbank could be expensive. In the lengthy legal dispute with former shareholders of the acquired institution, the company is preparing for a payment. The provision, however, had no impact on the bank's strategic plans or financial targets. The bank confirmed its goals for the current and coming year.
In Frankfurt am Main, the German Bank revealed a loss of 143 million Euros in their second quarter, a departure from the profit of 763 million Euros from the previous year. This challenging financial situation can be attributed to a 1.3 billion Euro provision set aside for potential payments to former Postbank shareholders, following the bank's takeover of Postbank. Despite these setbacks, the operational side of the bank in Frankfurt has been performing better than anticipated by analysts. The bank has remained resilient, confirming its financial targets and goals for the current and upcoming year, demonstrating its commitment to its strategic plans.
