Deutsche Bank loses 300m euro over court rulingEuropost
Deutsche Bank announced it expected massive losses after a court ruling, Reuters reported. The case was filed from customers challenging the volume of bank's fees. The information related to expected losses was confirmed by the CFO James von Moltke. In an online conference he stated that Deutsche Bank expects to take as much as a 300 million euro damage from the recent court rulling that favored consumers over banking fees.
The bank further foresees a 100 million euro provision in the current quarter and temporary revenue declines of 100 million euros in both the second and third quarters. A ruling by Germany's high court at the end of April makes it harder for banks to change terms and conditions with their customers, meaning clients may claw back past price increases and changing the way banks operate in the future.
The case overturned about 45 years of accepted practice in the market, von Moltke said.
Banks have been scrambling to assess the impact of the ruling and Germany's financial regulator BaFin has warned of a potentially significant impact on earnings.
Analysts had been expecting Deutsche Bank to post a profit of around 340 million euros in the second quarter, according to Refinitiv data.