Deutsche Bank faces an array of investigations that ranges from allegations of manipulating the Libor benchmark rate to unfairly favoring some investors in so-called dark pools and has already paid more than 5 billion euros over the past two years in settlements and fines.
In a new development, Deutsche Bank said it had received requests for information from regulators related to high frequency trading, and that it had been named as a defendant in class action complaints alleging violations of U.S. securities laws related to high frequency trading.
"There is significant uncertainty as to the timing and size of potential impacts. Accordingly, actual litigation costs for the balance of fiscal year 2014 are unpredictable," Deutsche Bank said in a presentation.
Deutsche Bank posted 1.8 billion
euros in net revenue in its debt trading operations, part of its
investment bank, while rivals saw a 9 percent decline on average in the
quarter.
"For me, the pleasant surprise was debt sales and trading, and the costs line," said Bankhaus Lampe analyst Neil Smith.
"Sales and trading were better than I expected, at flat year-on-year, compared with the negative 10-15 (percent) we've seen with some banks year-on-year."
Deutsche Bank shares have fallen around 20 percent so far this year versus a 1 percent rise for the STOXX index of European banks. On Tuesday they fell 1.4 percent in early trading compared with a flat performance in the index.
Deutsche Bank had been expected to post pretax profit of 590 million euros, according to the average result of a Reuters poll where the 10 sample estimates spanned a wide range from a 694 million euro loss to a 1.1 billion gain.
