Deutsche Bank (DBK) AG, Germany’s largest lender, said it expects to log 894 million euros ($1.13 billion) of litigation costs in the third quarter.
The figure relates to "a number" of items that are largely not tax-deductible, the Frankfurt-based bank said yesterday in a statement carried by Bloomberg Businessweek.
Deutsche Bank has yet to resolve probes into its role in industrywide attempts to manipulate benchmark interest rates and currency markets, and also faces lawsuits alleging it failed to make adequate disclosure of U.S. mortgage-backed securities. The announcement brings Deutsche Bank’s legal costs for the first nine months to about 1.36 billion euros.
The company’s legal costs, which totaled 3 billion euros last year, are hampering efforts to build capital and increase returns for investors. The lender raised its reserves for litigation expenses by 450 million euros to 2.2 billion euros at the end of the first half.