Deutsche Bank has reported a net loss of €2.18bn for the fourth quarter of 2017, compared to a net loss of €1.89bn reported in the same period a year ago.
The results were dented by a non-cash charge of around €1.4bn booked by the bank following an overhaul in the US tax rule.
The group’s pre-tax loss for the quarter was €1.34bn, versus a pre-tax loss of €2.41bn in the corresponding quarter of 2016.
Compared to the previous year, the group’s noninterest expenses slumped 23% to €6.92bn and provision for credit losses plummeted 74% to €129m.
The Private & Commercial Bank (PCB) unit of Deutsche Bank reported pre-tax loss of €659m for the fourth quarter of 2017, as against a pre-tax income of €700m reported last year.
The unit’s quarterly net revenues slumped 28% to €2.31bn from €3.2bn a year ago.
Noninterest expenses at the division were up 22% to €2.86bn from €2.34bn in the previous year. Provision for credit losses at the unit decreased 22% year-on-year to €123m.
Deutsche Asset Management posted pre-tax income of €115m for the fourth quarter of 2017, compared to a pre-tax loss of €753m in the previous year. Net revenues at the unit slid 22% year-on-year to €621m.
Deutsche Bank CEO John Cryan said: “In 2017 we recorded the first pre-tax profit in three years despite a challenging market environment, low interest rates and further investments in technology and controls. Only a charge related to US 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. The Postbank merger and partial flotation of DWS are both advancing well. We have made progress, but we are not yet satisfied with our results.”