Guides Q3 IBIT loss at €6B; cites impairment of goodwill and intangibles; may eliminate dividend for FY15
- ex items IBIT loss seen at €200M
- sees Q3 fully loaded CRR common equity tier 1 ratio at 11% for Q3
- An impairment of all goodwill and certain intangibles in Corporate Banking &Securities (CB&S) and Private & Business Clients (PBC) of approximately €5.8B. This is largely driven by the impact of expected higher regulatory capital requirements on the measurement of the value of these segments as well as current expectations regarding thedisposal of Postbank
- impairment of the carrying value of Deutsche Bank's 19.99% stake in Hua Xia Bank Co. Ltd. of approximately €0.6B.
- Litigation provisions of approximately €1.2B, the majority of which are not expected to be tax deductible.
Excluding the impact of the impairment of goodwill and intangibles, the third quarter IBIT loss would be approximately €0.2B and the net loss would be approximately €0.4B,largely reflecting the litigation provisions and Hua Xia impairment.
- On the same basis, Deutsche Bank expects to remain profitable year-to-date through the third quarter with IBIT of approximately €2.5B and net income of approximately €0.9B