German lender Deutsche Bank posted a net loss of 2.2 billion euros ($2.75 billion) in the fourth quarter of 2017 — worse than the net loss of 1.25 billion euros that Reuters analysts had forecast.
For the year, the German bank posted a 497 million euro loss ($621 million) compared to a 290 million euro loss that Reuters analysts had estimated. This was the third consecutive annual loss for Deutsche Bank.
The bank’s results were impacted by a drop in investment banking as well as tax changes in the U.S.
Deutsche Bank said Friday morning that it had a non-cash charge of about 1.4 billion euros due to a valuation adjustment on its U.S. Deferred Tax Assets. Without that, the bank said it would have made a full-year net income of about 900 million euros.
“Only a charge related to U.S. tax reform at the end of the year meant that we had to post a full-year after-tax loss. We believe we are firmly on the path to producing growth and higher returns with sustained discipline on costs and risks,” John Cryan, chief executive officer at Deustche Bank, said in a statement.
On the investment banking side, the German bank said that low volatility, reduced client activity and challenging trading conditions hurt its revenues. Fourth-quarter revenues for the investment banking arm were 2.7 billion euros, down 16 percent year-on-year.
The bank’s shares were down by 1.9 percent in pre-market trade.
