Deutsche Bank loses $116M in Q3, replaces CFO

Staff Writer
Columbus CEO

FRANKFURT, Germany (AP) — Deutsche Bank lost 92 million euros ($116 million) in the third quarter as the bank faced ongoing headwinds from lawsuits, new regulations and its effort to shed risky past investments.

Germany's biggest bank also said it would move its chief financial officer, Stefan Krause, to a new job in charge of strategy and replace him with a Goldman Sachs executive.

The net loss for the quarter ending Sept. 30 compares to a profit of 51 million euros in the same period a year ago, and to a profit of 238 million in the second quarter. Net third-quarter revenues rose 2 percent to 7.864 billion.

The bank said Thursday that set-asides for possible losses from litigation against it had also "materially impacted" its result.

Big banks have had to hire staff to comply with government regulations aimed at stabilizing the banking system and preventing more financial crises. Those included the year-long comprehensive review of bank finances by the European Central Bank, which concluded Sunday.

The bank also recorded 1.049 billion euros in losses from its non-core operations unit, where it has placed risky assets and investments that it is selling off or winding down to strengthen its overall finances.

The bank said it would bring in Marcus Schenk, 48, from Goldman Sachs to serve as deputy chief financial officer, taking over as chief financial officer at the bank's annual meeting on May 21, 2015. Krause will serve as CFO until then and then move to a new position as head of strategy and major change initiatives at the bank.