Tuesday, July 30, 2013

Deutsche Bank earnings sag on lawsuits, taxes

FRANKFURT, Germany (AP) ? Deutsche Bank says its net profits fell by 50 percent in the second quarter, lowered by expenses for lawsuits against the company and by higher taxes.

Net profit fell to 335 million euros ($445 million) from 666 million euros a year ago.

The bank set aside 630 million euros to cover lawsuit losses and saw its effective tax rate jump to 58 percent from 31 percent a year ago.

The bank said Tuesday it was making progress in strengthening its finances to meet new regulatory demands and hold down costs.

Deutsche Bank faces legal challenges related to U.S. mortgage bonds and a scandal over rigging of a key interest rate benchmark by a number of banks. Its legal set asides have now reached 3 billion euros.

Associated Press

Source: http://hosted2.ap.org/APDEFAULT/f70471f764144b2fab526d39972d37b3/Article_2013-07-30-Germany-Earns-Deutsche%20Bank/id-8ebc2e50fd234ab1ab43e8034b031edd

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