FRANKFURT, Germany – Deutsche Bank, Germany’s largest bank, posted on Friday a net loss of 497 million euros ($621 million) due to tax reforms in the United States.
Deutsche Bank reported that it lost 2.18 billion euros in the fourth quarter of last year, 15.6 percent more than in 2016.
The results mean the bank has posted losses for the third consecutive year.
While presenting the results, Deutsche Bank Chief Executive John Cryan said the bank had “recorded the first pre-tax profit in three years despite a challenging market environment, low interest rates and further investments in technology and controls.”
“Only a charge related to US tax reform at the end of the year meant that we had to post a full-year after-tax loss,” Cryan added.
The CEO said the bank was confident that it was “firmly on the path to producing growth and higher returns with sustained discipline on costs and risks.”
The result pre-tax results were better in 2017 because Deutsche Bank had less depreciations and less litigation costs than the previous year.
In the fourth quarter, Deutsche Bank also posted a pre-tax loss of 1.34 billion euros due to low income from capital markets, and costs of the sale of the private banking business and firms in Poland, as well as restructuring costs for the Postbank merger.
The interest revenue reduced last year by 15.2 percent, while provision for credit losses was down 62 percent.
Non interest related income fell by nine percent in the same period.