Deutsche Bank has lowered its profit figures for last year due to the fact it has had to set aside more money to deal with litigation costs.
Germany's biggest financier announced this morning (20 March) that it has decided to cut its post-tax profit estimation for 2012 by €400 million ($516 million) on its initial forecast to a total of €291 million.
A statement from the company confirmed this is because it has been forced to raise its budget for handling regulatory probes and lawsuits relating to its activity in the US mortgage market by around 33 per cent.
The bank has now set aside some €2.4 billion to deal with these issues and although this has had a negative impact on its annual profits, the firm insisted its capital and dividend targets remain unchanged.
Earlier this month, Deutsche Bank announced its decision to strengthen its domestic banking market, with co-chairman Jurgen Fitschen saying the group will pay particular attention to the "small and mid-sized corporate client segment" of the sector.
By Tony Aynsley