* Says underlying results 'solid' in October and November
* Unveils new segmental structure
* Charges go beyond costs announced in September
FRANKFURT, Dec 13 Deutsche Bank said
on Thursday that its radical restructuring plan would hit
fourth-quarter profits "significantly" as the bank gets on with
cleaning up its balance sheet, but there was no cause for
investors to be alarmed.
"This is not seen as a profit warning, this is a guidance
... to make you aware that we have effects coming out of
resegmentation," Chief Financial Officer Stefan Krause told
analysts during a conference call after the bank issued a
regulatory statement on the outlook for fourth-quarter results.
Despite a difficult economic environment, the bank said it
achieved solid operational results in October and November
across all its core businesses.
Nonetheless it also said that additional charges may hit
earnings. The lender had already told investors recently to
expect a 280 million-euro hit to fourth-quarter earnings ($367
million) from the group's overhaul plan announced in September.
At the time Deutsche Bank said the overhaul would cost a
total of 4 billion euros in restructuring charges but would
bring savings of 4.5 billion euros in annual costs and as part
of the plan it would hive off 125 billion euros worth of risky
assets into a segregated unit to improve its capital base.
But on Thursday the bank said the revamp combined with new
valuation adjustments for certain assets and charges related to
restructuring a Dutch transaction banking business are expected
to cause an additional burden on earnings this year.
"We currently expect these specific items to have a
significant negative impact on the bank's earnings in the fourth
quarter 2012," the bank said, without providing further details
on the expected amount.
Deutsche Bank shares closed down 2.7 percent at 33.34 euros.
The bank has not given any specific earnings forecast this
year but analysts on average had been forecasting a
fourth-quarter pretax profit of 845 million euros, a swing back
from a loss in the same period last year. Forecasts for the
full-year profit average 4.8 billion euros, down from the 5.4
billion euros reported for 2011, according to Thomson Reuters
The bank said it still expected to have a core Tier 1
capital solvency ratio of 7.2 percent by 2013.
Separately Krause declined to comment on the arrests of five
staff during a raid on the bank's Franfurt headquarters by the
German tax authorities and police on Wednesday.