German bank regulator BaFin has found that Deutsche Bank had incorrectly disclosed deferred tax assets in its 2019 consolidated financial statement, it said today.
The bank did not disclose deferred tax assets of €2.076 billion for its US business separately in the notes to the financial statement, although it should have because it recorded losses over several years, BaFin said.
"With this finding of an error, BaFin has concluded proceedings initiated by the German Financial Reporting Enforcement Panel (FREP). The FREP had started it as a random sample examination with a considerable scope," it said.
BaFin did not mention a fine or other response as a result of its finding.
Deutsche Bank said that in its view today, and at time of publication, the 2019 financial statement and other disclosures comply fully with international accounting standards.
"There is no suggestion on BaFin's part that there is any inaccuracy in Deutsche Bank's 2019 accounts, and no restatement or other action is required," said the bank in a statement.
It emerged yesterday that Deutsche Bank is expected to post a loss for the second quarter.
This is according to a new analyst consensus forecast published on the bank's website.
Any loss at Germany's largest lender would break a streak of 15 consecutive quarters in the black in a setback for the bank's turnaround under CEO Christian Sewing.
The bank has warned it would set aside up to €1.3 billion in the quarter for a long-running lawsuit claiming it underpaid for its purchase of its giant Postbank division.
