Oct 27, 2016
Deutsche Bank posts surprise profit despite threat of $14bn fine
The troubled German lender Deutsche Bank has unexpectedly returned to profit in the third quarter, beating analysts' estimates and helping to alleviate concerns over its litigation issues.
Deutsche bank, led by the British banker John Cryan,
reported a profit of €278 million (£248m) for the three months to the end of
September. This compares to €6 billion loss in the same quarter of 2015.
Concerns persist over the strength of Germany's biggest bank since US authorities suggested it pay $14 billion fine (£11.6bn) to settle civil claims regarding its handling of mortgage-backed securities that contributed to the 2008 financial crisis.
Reports emerged earlier this month that a settlement may not be on the cards until January, which may have disappointed investors.
The size of the fine remains undetermined.
John Cryan, Deutsche Bank chief executive, has been cutting risky assets, freezing dividend payments and eliminating about 9,000 staff to boost capital levels as part of a restructuring plan announced last year.
By Zlata Rodionova