Deutsche Bank AG said it will take a charge of 1.5 billion euros in its fourth-quarter results, after accounting for the decreased value of its deferred tax assets in the US according to the recent US tax reform.
The bank expects to record a small full-year after-tax loss on an international financial reporting standards (IFRS) basis. Earlier, Deutsche Bank AG Chief Executive Officer John Cryan said he was aiming to return to profit in 2017.
The writedown will have a 10 basis-point impact on the bank’s regulatory capital situation. Its common equity tier 1 ratio stood at 13.8% at the end of the third quarter.
Previously, other major US and European banks, including Barclays, Credit Suisse and Goldman Sachs have announced similar hits.
Deutsche Bank will publish its preliminary results for the fourth quarter of the financial year 2017 on February 2.
