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Deutsche Bank posts one billion euro legal provision
Deutsche Bank has followed JP Morgan Chase, Bank of America and Lloyds in posting hefty legal provisions in its latest results.
Bank's legal provision surprises analysts Martynova Anna
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The German bank showed a Q3 profit of just €41 m, down 94 per cent on the Q3 total of €747 m, surprising analysts with the size of its legal provision. As with JP Morgan and Bank of America, Deutsche is facing large costs relating to US mortgage litigation. Its co-chief executives Anshu Jain and Juergen Fitschen said in a statement, according to the Financial Times: 'In the third quarter we met several challenges. We took substantial litigation charges and saw reduced profits in investment banking, leading to a lower quarterly result.' The firm is still on line for a penalty regarding the scandal surrounding the rigging of the Libor rate.
PPI continues to bite
Lloyds Bank is setting aside another £750 m to cover the costs of the mis-selling of personal protection insurance, taking its costs to date for compensation on this product to £8 billion, according to the BBC.
