Deutsche Bank might temporarily miss capital target

first_imgLast month the bank warned that the economic fallout from the pandemic may affect its ability to meet its financial targets as it undergoes a radical overhaul. Deutsche Bank might temporarily miss capital target as impact of coronavirus hits Deutsche Bank announced first-quarter results were above market expectations, but warned it might temporarily miss its capital requirement target in light of the coronavirus crisis. “This revised outlook acknowledges that credit extension to support clients at this time could increase risk weighted assets for several quarters,” Deutsche Bank said. “In addition, there are a series of pending and proposed regulatory adjustments which could improve the bank’s reported CET1 ratio.” Deutsche Bank said it was possible it would “fall modestly and temporarily” below its common equity tier 1 (CET 1) target of 12.5 per cent due to the coronavirus-induced recession. The bank also said it was unlikely it would reach its 2020 fully-loaded leverage ratio target of 4.5 per cent, without regulatory adjustments to the leverage ratio calculation. Investors shrugged off the warning and shares are up 10.84 per cent. Deutsche Bank’s headquarters in Frankfurt. (Getty Images) Also Read: Deutsche Bank might temporarily miss capital target as impact of coronavirus hits Show Comments ▼ whatsapp Monday 27 April 2020 8:25 am Chief executive Christian Sewing has been leading a dramatic turnaround €7.4bn (£6.7bn) effort. The restructuring involves cutting 18,000 jobs to increase the lender’s focus on corporate banking and slim down its investment banking arm. Deutsche Bank’s headquarters in Frankfurt. (Getty Images) Also Read: Deutsche Bank might temporarily miss capital target as impact of coronavirus hits In an unscheduled update on Sunday, the German lender said it expects to report group profit before tax of €206m (£179.6m)and net income of €66m (£57.54m). Revenue is expected to be €6.4bn, with provisions for credit losses of €500m. Deutsche Bank’s headquarters in Frankfurt. (Getty Images) Share Deutsche Bank reaffirmed its other financial targets for the year and will give full details as planned on 29 April. Get the news as it happens by following City A.M. on Twitter.  Angharad Carrick Listen to our daily City View podcast as we chart the economic fallout and business impact of the coronavirus pandemic. whatsapp by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeDaily FunnyFemale Athlete Fails You Can’t Look Away FromDaily Funnyzenherald.comMeghan Markle Changed This Major Detail On Archies Birth Certificatezenherald.comBleacherBreaker4 Sisters Take The Same Picture For 40 Years. Don’t Cry When You See The Last One!BleacherBreakerMisterStoryWoman files for divorce after seeing this photoMisterStorybonvoyaged.comThese Celebs Are Complete Jerks In Real Life.bonvoyaged.comNoteableyJulia Robert’s Daughter Turns 16 And Looks Just Like Her MomNoteableyNational Penny For Seniors7 Discounts Seniors Only Get If They AskNational Penny For SeniorsJustPerfact USAMan Decides to File for Divorce After Taking a Closer Look at This Photo!   JustPerfact USAPost FunWoman Refuses To Tip Waiter But Didn’t Realize What She Left At The TablePost Fun The German lender’s CET 1 ratio was 12.8 per cent at quarter-end, down from 13.6 per cent at year-end. The decline in the ratio included approximately a 30 basis points negative impact from the revised securitisation framework. It also included approximately 40 basis points of items due to the coronavirus pandemic. More From Our Partners Brave 7-Year-old Boy Swims an Hour to Rescue His Dad and Little Sistergoodnewsnetwork.orgFlorida woman allegedly crashes children’s birthday party, rapes teennypost.comAstounding Fossil Discovery in California After Man Looks Closelygoodnewsnetwork.orgA ProPublica investigation has caused outrage in the U.S. this weekvaluewalk.comRussell Wilson, AOC among many voicing support for Naomi Osakacbsnews.comNative American Tribe Gets Back Sacred Island Taken 160 Years Agogoodnewsnetwork.org980-foot skyscraper sways in China, prompting panic and evacuationsnypost.comPolice Capture Elusive Tiger Poacher After 20 Years of Pursuing the Huntergoodnewsnetwork.orgBiden received funds from top Russia lobbyist before Nord Stream 2 giveawaynypost.comlast_img read more

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