Earnings estimates

Deutsche Bank is scheduled to report its 4Q16 earnings on February 2 after the markets close. Wall Street (SPY) analysts expect Deutsche Bank to report 4Q16 losses of 1.34 euros per share ($1.44) and net losses of 1.6 billion euros ($1.7 billion). In 4Q15, the bank reported losses of 2.1 billion euros ($2.3 billion). Analysts expect the bank to post revenues of 7.1 billion euros ($7.6 billion).

What Do Analysts Expect from Deutsche Bank’s Earnings?

Fiscal 2016

European banks (EUFN) like UBS (UBS), Credit Suisse (CS), and Barclays (BCS) have been struggling to maintain their profitability amid negative interest rates and strict regulations.

It’s important to note that 2016 was expected to be the peak of restructuring for Deutsche Bank. The company planned to incur restructuring and severance expenses of 1 billion euros in 2016. Litigation charges will continue to put pressure on earnings in 2016. The cost pressures are expected to be offset by savings. On an adjusted basis, costs are expected to be flat over the year. RWAs (risk-weighted assets) from non-core operating units are expected to fall, but operational risk RWAs will likely offset them. Overall, RWAs are expected to be flat in 2016.

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