Don't miss

Replay


LATEST SHOWS

EYE ON AFRICA

Mandela commemorations: Barack Obama honours Madiba's legacy

Read more

MEDIAWATCH

Trump backtracks on Russian meddling

Read more

THE DEBATE

Collusion? Backlash after Trump praises Putin in Helsinki

Read more

FOCUS

Is French oak under threat?

Read more

ENCORE!

Questions of gender take centre stage at Avignon’s theatre festival

Read more

IN THE PRESS

Street party, not a wake: Croatian football fans welcome home team

Read more

BUSINESS DAILY

UK looks to calm Brexit fears at Farnborough Airshow

Read more

EYE ON AFRICA

Nigeria: Army denies reports of missing soldiers after Boko Haram attacks

Read more

FOCUS

Despite economic blockade and corruption scandals, Qatar prepares for its 2022 World Cup

Read more

Deutsche Bank shares tumble on investment bank headwinds

© AFP/File | The strong euro isn't helping Deutsche Bank, as much of the business of its corporate and investment banking division is done in dollars

FRANKFURT AM MAIN (AFP) - 

Shares in Germany's biggest lender Deutsche Bank slid around 6.0 percent Wednesday, after its finance chief warned of first-quarter headwinds for its corporate and investment banking division.

"We do have a headwind in a year-on-year comparison, before you get to business performance, of about 450 million" euros ($515 million), chief financial officer James von Moltke said at a London banking conference.

With some 40 percent of its business "either dollar-denominated or linked to the dollar," the unit would suffer a 300-million-euro blow from currency effects, he said.

One euro is worth around $1.22 at present, compared with around $1.06 at the end of March 2017 -- sapping the value of earnings in the greenback on Deutsche's books.

Meanwhile increased funding costs would add a further burden of 150 million euros, von Moltke said.

Shares in Deutsche Bank lost 5.6 percent in Frankfurt on the comments to trade at 11.95 euros by 1425 GMT, making them by far the worst performers on the DAX index of blue-chip German stocks.

Von Moltke said performance at the corporate and investment division was "depending on the business, flat to slightly down from last year," although it was unclear whether he was referring to revenues or profits.

However, he noted that increased volatility on financial markets made for a "generally constructive environment" for the bank.

Deutsche said last week that it made a much higher loss than initially reported in 2017, at 751 million euros compared with the 512 million previously announced.

The bank, which is in the throes of a tough restructuring and mired in costly legal cases, last month blamed 2017's poor performance on corporate tax reforms in the United States.

It added that it made a pre-tax profit of 1.2 billion euros, its first time in the black by that measure since 2014.

© 2018 AFP