Deals
Deutsche Bank Warns of Loan Defaults After Surprise Profit
- Bank sets aside half a billion euros for bad loans amid virus
- Profit, revenue beat analysts’ estimates in first quarter
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Deutsche Bank AG became the latest European lender to gird for mounting losses from the coronavirus pandemic, setting aside about 500 million euros ($542 million) to cover bad loans after a better-than-expected first quarter performance.
Revenue and net income at Germany’s largest lender beat analyst estimates during the first three months of the year, for the most part unaffected by the outbreak, the company said late Sunday. But its provisions for soured credit were probably the highest in six years and the bank scrapped its minimum target for capital buffers as fallout from the virus spreads.