Deutsche Bank reports 2015 fourth quarter net loss of €2.1 billion and full year net loss of €6.8 billion

John Cryan, Co-Chief Executive Officer, said: “In 2015 we made considerable progress on the implementation of our strategy. The much-needed decisions we took in the second half of the year contributed to a net loss for the fourth quarter and full year.”

He added: “We are focused on 2016 and continue to work hard to clear up our legacy issues. Restructuring work and investment in our platform will continue throughout the year.”

He concluded: “We know that periods of restructuring can be challenging. However, I’m confident that by continuing to implement our strategy in a disciplined manner, we can and will transform Deutsche Bank into a stronger, more efficient and better run institution.”

Revenues were €6.6 billion in 4Q 2015, down 15% year-on-year. This primarily reflected a year-on-year revenue decline in Corporate Banking & Securities (CB&S) and mark-to-market losses in the Non-Core Operating Unit (NCOU). Revenues in the full year 2015 were €33.5 billion, up 5% year-on-year.

Revenues were slightly up at constant exchange rates and excluding the €0.7 billion impact from the Hua Xia Bank transaction, including the impairment of the Bank’s 19.99% stake in the Chinese Bank as well as other transaction-related effects.

Noninterest expenses were €9.0 billion in 4Q 2015, up 24% year-on-year. Noninterest expenses in the quarter included €0.8 billion of expenses for restructuring and severance, predominantly in Private & Business Clients (PBC), and €1.2 billion of litigation charges. The Adjusted Cost Base, which excludes litigation, impairments, policyholder benefits and claims and restructuring and severance, was EUR 6.8 billion in 4Q 2015, up from EUR 6.4 billion, and up slightly from €6.7 billion at constant exchange rates, in 4Q 2014.

Noninterest expenses in the full year 2015 were €38.7 billion, up from €27.7 billion in 2014, and included: impairments of goodwill and other intangible assets of €5.8 billion; litigation charges of €5.2 billion (2014: €2.0 billion); and restructuring and severance expenses of €1.0 billion (2014: €0.4 billion). These specific items totalled €12.0 billion in 2015. The Adjusted Cost Base of €6.5 billion was up slightly versus 2014, but slightly lower at constant exchange rates, reflecting lower expenses in NCOU due to disposals and other cost savings, counterbalanced by higher regulatory spending.