Deutsche Bank drops 5.5% after announcement by Postbank

FRANKFURT (Reuters) -Deutsche Bank shares fell 5.5% in early trading on Monday on news that a long-running lawsuit could cost Germany's biggest lender up to 1.3 billion euros ($1.39 billion).

The issue is a blow to Deutsche, which posted better-than-expected profits last week, boosting its shares. It is the latest in a series of problems that have arisen from the purchase of the no-nonsense Postbank.

Analysts at RBC lowered the price target for Deutsche Bank, despite the 'outperform' rating.

“It is disappointing that improved performance and a constructive work environment are being overshadowed by legacy lawsuits from long ago,” RBC said.

Deutsche Bank unexpectedly announced last Friday that it would make a provision to compensate for possible claims in the lawsuit.

It said it “continues to strongly disagree” with the view that it has underpaid. The bank did not specify the amount it had set aside, but noted that the claims totaled about 1.3 billion euros.

The news followed better-than-expected earnings figures and a sharp rise in the share price.

Deutsche said the provision would impact second-quarter and full-year profitability.

($1 = 0.9325 euros)

(Reporting by Tom Sims; Editing by Friederike Heine and Jason Neely)

Related Posts

  • Finance
  • May 15, 2024
  • 13 views
  • 3 minutes Read
Here are the top ten picks for the Mormon church's $55 billion stock portfolio

Getty Images The investment arm of the Mormon church disclosed some of its assets in a 13F filing on Wednesday. The church has built a portfolio of individual stocks worth…

  • Finance
  • May 15, 2024
  • 17 views
  • 4 minutes Read
Florida lawmakers are proposing to change the tax code to provide premium relief for homeowners

Florida lawmakers are proposing to change the tax code to provide premium relief for homeowners Florida Congressman Byron Donalds is working with his colleague Senator Rick Scott on a bill…

Leave a Reply

Your email address will not be published. Required fields are marked *

You Missed

AI models have favorite numbers because they think they are people

  • May 28, 2024
AI models have favorite numbers because they think they are people

“Other” Celtics still have more work to do, but so far they have passed every test

  • May 28, 2024
“Other” Celtics still have more work to do, but so far they have passed every test

New lawsuit filed in Pennsylvania to prevent mail-in ballots from being thrown out

  • May 28, 2024
New lawsuit filed in Pennsylvania to prevent mail-in ballots from being thrown out

'When Calls the Heart' actress Mamie Laverock on life support after falling from balcony

  • May 28, 2024
'When Calls the Heart' actress Mamie Laverock on life support after falling from balcony

Ryan Salame, part of the 'inner circle' at the collapsed crypto exchange FTX, sentenced to prison

  • May 28, 2024
Ryan Salame, part of the 'inner circle' at the collapsed crypto exchange FTX, sentenced to prison

US court will hear challenges to a possible TikTok ban in September

  • May 28, 2024
US court will hear challenges to a possible TikTok ban in September

OpenAI forms a safety and security committee as concerns about AI grow

  • May 28, 2024
OpenAI forms a safety and security committee as concerns about AI grow

LIVE UPDATES FROM INSIDE TRUMP TRIAL: TGP Contributor Paul Ingrassia Reports from Inside New York Show Trial – Closing Arguments Scheduled for Today | The Gateway Pundit

  • May 28, 2024
LIVE UPDATES FROM INSIDE TRUMP TRIAL: TGP Contributor Paul Ingrassia Reports from Inside New York Show Trial – Closing Arguments Scheduled for Today | The Gateway Pundit

Nicole Brown Simpson's sisters reflect on their abusive relationship with OJ Simpson ahead of the 30th anniversary of the murder

  • May 28, 2024
Nicole Brown Simpson's sisters reflect on their abusive relationship with OJ Simpson ahead of the 30th anniversary of the murder

Michael Jordan and Woody Harrelson: Tales from the Kenny Rogers Classic Weekend

  • May 28, 2024
Michael Jordan and Woody Harrelson: Tales from the Kenny Rogers Classic Weekend

10 Tips For Becoming A Successful Entrepreneur in 2024

  • May 28, 2024
10 Tips For Becoming A Successful Entrepreneur in 2024