Germany's Deutsche Bank has reported a surprise pre-tax loss of €181m for its third quarter compared with a profit of €363m in the same period a year ago. Most analysts had expected a profit of around €282m.
Germany's largest bank blamed a steep rise in loan loss provisions and lower trading revenues but said it expected a 'satisfying' full year result.
The main source of the dismal third quarter losses were risk provisions for bad loans of €753m, up from €588m in the previous quarter, and much higher than the expectations of analysts. The 12-month comparison, showing €135m in the third quarter of 2001, painted a particularly gloomy picture.
The bank said the primary causes of the extra provisions were unfavourable developments in the telecommunications sector, as well as specific difficulties in certain German and US exposures.
Trading profits, often a strong point in previous quarters, also disappointed, falling to €904m from €974m in the second quarter.
The bank is in the throes of cutting 14,500 jobs, of which some 10,000 have already been shed.
