Deutsche Bank expects to lose €6bn in just three months

Deutsche Bank warned it would post a net loss of €6.2bn in the third quarter and that dividends for the year may be scrapped.

The bank said it would book a charge of €5.8bn in impairments, “largely driven by the impact of expected highly regulatory capital requirements… as well as current expectations regarding the disposal of Postbank“.

The group was also setting aside €1.2bn to meet litigation costs.

Deutsche’s shares fell 3.6pc in early trading.

The bank is embroiled in the Libor-rigging scandal and is being investigated by Swiss authorities for suspected price fixing on the precious metals market.

Deutsche further took a hit of €600m euros in the value of its almost 20pc stake in Hua Xia Bank.

In what appeared to be a confirmation of reports that it was intending to dispose of the China-based bank holding, Deutsche said there had been a “change of the intent of the holding” and that it “no longer considers this stake to be strategic”.

The group added that it would have to slash or even eliminate dividends for the year.

Deutsche is due to publish its third-quarter results on October 29.