Deutsche Bank shares slump after posting 3rd consecutive loss

Reuters

• 
  Deutsche Bank posts third consecutive annual
  loss.
  


• 
  Shares fall more almost 6%.
  


• 
  CEO John Cryan cites a "challenging market."
  

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LONDON – Shares in Deutsche
Bank on Friday fell almost 6% after the lender posted its
third consecutive annual net loss.

Deutsche Bank, Germany's largest lender, reported a full year
loss of €497 million ($621 million) for 2017 against analyst
consensus forecasts of a €290 million loss, according to nine
banks and brokerages surveyed by Reuters.

The bank took a hit from flat markets, falling investment bank
revenue and a $1.8 billion charge from changes to the US tax
system.

While Deutsche Bank took an upfront hit from tax reform – having
to revalue deferred tax assets – "the reduction in the US federal
tax rate is expected to have a positive impact on net income" in
the future, the bank said
in a statement.

Here's the chart of Deutsche Bank's shares in pre-market trading
in New York. The firm's Frankfurt listed shares were down close
to 6% as of 10.00 a.m. GMT (5.00 a.m. ET):

Markets
Insider

Tax proved the bank's undoing in 2017. Deutsche Bank did post a
pre-tax profit of €1.3 billion, its first in three years. 

CEO John Cryan said: “In 2017 we 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."

"We believe we are firmly on the path to producing growth and
higher returns with sustained discipline on costs and risks," he
said.

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