Banking giant Deutsche Bank has posted a loss for the third year running, citing short-term pain from president Trump’s tax reforms.
Germany’s biggest bank said it had been hit by a €1.4bn ($1.8bn) charge as a result of changes to the corporate tax system.
The bank reported a fourth-quarter pre-tax loss of €1.3bn, versus a loss of €2.4bn in the same quarter the previous year.
Income for the full 2017 financial year was €1.3bn before tax, versus a loss of €810m in 2016.
However, Deutsche Bank said its results were heavily affected by US tax reform. The bank had to make a non-cash charge of approximately €1.4bn arising from a valuation adjustment on its US Deferred Tax Assets (DTAs).
Although corporation tax is being reduced from 35% to 20-22% (the final rate has yet to be agreed), changes in the way assets are taxed are causing a big short-term hit for some companies.