Krisztian Bocsi | Bloomberg | Getty Images
Statues stand outside a Deutsche Bank AG branch in Frankfurt, Germany, on Thursday, Oct. 20, 2016.
Deutsche Bank will post a modest net loss in 2017 after weak trading, low client activity in addition to a 1.5 billion euro ($1.8 billion) negative impact via a tax overhaul inside the United States, the idea said on Friday.
The bank said that will the reduction inside the U.S. corporate rate to 21 percent via 35 percent would certainly translate into an average tax rate for the whole group at the lower end of a range between 30 percent in addition to 35 percent.
The lower effective tax rate will require a revision to the valuation of deferred tax assets, causing the negative hit to Deutsche’s fourth-quarter earnings, the idea said, adding that will the idea will not have any cash impact.
“Trading conditions inside the fourth quarter 2017 were characterised by low volatility in financial markets in addition to low levels of client activity in key businesses,” Deutsche Bank said in its statement.
Germany’s largest lender has struggled to keep revenue via shrinking in addition to experienced a 10 percent drop inside the third quarter. The bank had warned that will the fourth quarter could be rough in addition to confirmed that will view on Friday.
Revenue at Deutsche Bank’s cash-generating bond-trading division were required to drop 22 percent via a year ago, the bank said.
Deutsche Bank’s shares extended losses after the announcement in addition to were down 4.4 percent by 1557 GMT. Before the announcement, shares were down about 2 percent.
The bank will be due to report fourth-quarter in addition to full-year earnings on Feb. 2.
Correction: Reuters updated This particular story to correct the time frame of the loss.