Deutsche may suspend dividends
(8 October 2015 - Germany) Germany’s Deutsche Bank has warned investors that it would post a net loss of €6.2 billion ($A 9.68 billion) in the third quarter, signalling fears that this year’s dividends may be scrapped.
The bank said it would book a charge of €5.8 billion in impairments, "largely driven by the impact of expected highly regulatory capital requirements... as well as current expectations regarding the disposal of Postbank".
The group has also set aside €1.2 billion to meet litigation costs, particularly for its role in the Libor-rigging scandal and the Swiss investigation into price fixing on the precious metals market.
The bank has seemingly confirmed recent reports that it will divest itself of the 20 percent stake it holds in China-based Hua Xia Bank saying there had been a "change of the intent of the holding" and that it "no longer considers this stake to be strategic". Deutsche’s shares in the bank recently plummeted by €600 million in the value.
The group expects to significantly drop or potentially eliminate dividends for the year.
Third-quarter results for the bank will be published on October 29.
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