Deutsche Bank will miss full-year profit target

Deutsche Bank AG

Last Updated at 21 Mar 2018, 16:35 GMT *Chart shows local time Deutsche Bank AG intraday chart
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Deutsche Bank says it will miss its profit target for the year as it takes impairment charge of 250m euros (£215m, $330m) on its Greek government debt holdings.

Germany's biggest bank also said it would cut 500 jobs, mainly outside its home market.

Deutsche Bank's statement comes as fears continue to rise about the health of the eurozone.

Shares in the bank were down 5.8% in trading in Frankfurt.

Deutsche Bank's chief executive, Josef Ackermann, told an investors' conference in London there had been a "significant and unabated slowdown in client activity".

But he added that banking business not related to sovereign debt was robust.

"We are confident that the classic banking businesses - private clients, asset management and global transaction banking - as a whole will deliver their best pre-tax profit ever."

Deutsche's profit was previously expected to be around 10bn euros.

Data from Reuters shows that since September, half the 34 analysts that follow Deutsche Bank have revised their full-year earnings estimate down by an average of 10.3% to around 7.72bn euros, including one-off charges, and corporate investments.

Deutsche Bank itself had excluded these from its target definition.

Its latest reported net profits for the three months to 30 June were 1.2bn euros ($1.8bn; £1bn), 6% higher than a year earlier.

At the time it revealed it had needed to write down 155m euros from the value of its Greek government bonds.

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