Profit down at Deutsche due to legal fees

Deutsche Bank’s earnings fell by half in the first quarter, a drop that was greater than expected as hefty legal charges eroded gains in investment banking revenue.

Quarterly net profit sank to €559 million versus a year ago, despite a 24 per cent rise in revenue driven primarily by an increase in client trading activity.

Group revenue rose to a near record €10.4 billion. Almost half came from the investment bank, but its pretax contribution fell by more than half due to litigation and regulatory expenses, and currency swings, the bank said.

Deutsche has so far positioned itself as Europe’s “last man standing” in investment banking, even though it has made cuts in certain business lines.

Deutsche is to announce details today of a new strategic plan. – (Reuters)