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On July 2, 2024, Deutsche Bank’s offices in the City of London faced challenges as the institution experienced a break in its profit streak for the first time in over three years. The Germany-based financial giant reported a net loss attributable to shareholders amounting to 143 million euros ($155.1 million), which was slightly better than analysts’ expectations, who had forecasted a loss of 145 million euros.
This downturn followed a particularly robust first quarter, where the bank recorded a 10% increase in profits, driven largely by a rebound in its investment banking segment. This earlier performance had set the tone for optimism, as it marked Deutsche Bank’s highest first-quarter profit since 2013 and the continuation of 15 consecutive profitable quarters.
However, the bank’s recent struggles are compounded by scrutiny from German regulators. In the past week, Deutsche Bank faced criticism from the Federal Financial Supervisory Authority (BaFin) regarding its failure to correctly disclose deferred tax assets in its 2019 financial statements. This misstep, BaFin noted, could not be reconciled with international accounting standards and involved approximately 2.076 billion euros in deferred tax assets not being separately noted in the disclosures pertaining to Deutsche Bank’s U.S. operations.
As Deutsche Bank navigates these complications, the future trajectory of its financial health remains to be seen. The ongoing lawsuit related to its Postbank division also adds layers of complexity that could influence its performance in the forthcoming quarters.
This breaking news story is being updated.
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