Lawsuit expenses hit Deutsche Bank profit

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Associated Press

Posted on October 29, 2013 at 5:34 AM

Updated Tuesday, Oct 29 at 6:04 AM

FRANKFURT, Germany (AP) — Deutsche Bank says its net profit shrank to a bare 51 million euros ($70 million) in the third quarter after it set aside 1.2 billion euros to pay for losses from lawsuits.

The net profit compared to a figure of 754 million euros in the same quarter a year ago.

The bank also said Tuesday that its investment banking business has slowed. Net revenues fell 10 percent to 7.7 billion euros.

It said charges for litigation were mostly related to lawsuits over residential mortgage-backed securities, investments based on mortgage loans to borrowers with shaky credit. The securities helped drive financial turbulence in 2007-2009 as they lost value.

Deutsche Bank said it was making progress in strengthening its finances to meet new regulatory requirements and was cutting costs.

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