Deutsche Bank sees 300 million euro hit from recent court ruling
4:31 am Thursday, June 10th, 2021
FRANKFURT (Reuters) -Deutsche Bank expects to take a 300 million euro ($365 million) hit from a recent court ruling that favours consumers over banking fees, the lender’s finance chief said on Thursday.
The bank foresees a 100 million euro provision in the current quarter and temporary revenue declines of 100 million euros in both the second and third quarters, CFO James von Moltke said at an online conference.
A ruling by Germany’s high court at the end of April makes it harder for banks to change terms and conditions with their customers, meaning clients may claw back past price increases and changing the way banks operate in the future.
The case overturned about 45 years of accepted practice in the market, von Moltke said.
Banks have been scrambling to assess the impact of the ruling and Germany’s financial regulator BaFin has warned of a potentially significant impact on earnings.
Analysts had been expecting Deutsche Bank to post a profit of around 340 million euros in the second quarter, according to Refinitiv data.
($1 = 0.8226 euros)
(Reporting by Tom Sims and Patricia UhligEditing by Riham Alkousaa and Caroline Copley)
