Updated
Updated · Bloomberg · Jun 3
Deutsche Bank Flags Higher Q2 Loan-Loss Provisions Than Consensus as It Cleans Up Balance Sheet
Updated
Updated · Bloomberg · Jun 3

Deutsche Bank Flags Higher Q2 Loan-Loss Provisions Than Consensus as It Cleans Up Balance Sheet

1 articles · Updated · Bloomberg · Jun 3

Summary

  • Q2 credit-loss provisions at Deutsche Bank will likely come in slightly above analyst consensus, CFO Raja Akram said at an investor conference on Wednesday.
  • Those reserves are still expected to decline from the prior quarter, but the bank is setting aside more than expected as souring loans pressure its balance sheet.
  • The guidance points to continued credit-quality strain even as Deutsche Bank works through problem assets and tries to strengthen its balance sheet.

Insights

After posting record profits, why is Deutsche Bank suddenly preparing for a surge in bad loans?
Is the bank's cautious move a warning of a looming crisis for the entire European banking sector?