Deutsche Bank has warned it will post a net loss of £4.5bn in the third quarter of this year, and said it could cut its dividend.
The bank will reveal its third-quarter results on 29th October, predicting a €6.2bn loss as regulation hits its investment banking division and it swallows costs related to the sale of its retail Postbank division, reports the Wall St Journal.
The bank has also set aside €1.2bn for legal costs. It has faced huge fines for its involvement in Libor rigging.
Deutsche Bank shares fell near 3 per cent on the news at market open, before rebounding, as analysts had been expecting a €1bn profit before the announcement.
Deutsche Bank’s board will now recommend a “reduction or possible elimination” of its 2015 dividend, which is currently 55p per share.
Earlier this year Deutsche Bank was handed a £1.7bn fine for its involvement in Libor and Euribor rigging, as it was revealed 29 staff were involved in the scandal. The bank was also fined £36m by the FCA for misstated accounts in May.
The bank has revealed a reorganisation plan that involves cutting 23,000 staff, following the start of new chief executive John Cryan.