Deutsche Bank unveils record €6 billion net loss and cancels dividend for two years

Deutsche Bank unveiled a record net loss for the third quarter of this year.

The German lender reported a net loss of €6 billion (£4.3 billion, $6.6 billion) with €1.2 billion of that being for litigation charges.

Its litigation reserves now top €4.8 billion.

Revenues were down by 7% in the third quarter, compared to the same period last year, reaching € 7.3 billion mainly due to the bank's stake in China's Hua Xia Bank.

"In the third quarter 2015 we reported a record net loss - a highly disappointing result that was largely driven by items we had already flagged earlier in October," said John Cryan, Co-Chief Executive Officer at Deutsche Bank.

"Our Common Equity Tier 1 ratio nonetheless rose slightly to 11.5% and our Leverage Ratio remained stable at 3.6%, partly reflecting lower risk weighted assets and leverage exposures, and our decision not to recommend a dividend for the year.

"Revenues in core businesses held up, despite mixed business conditions during the quarter with market volatility in August and September. We recently announced a reorganisation of our business structure and a new management team. Later today, we will announce details of our implementation plans for Strategy 2020, including updated financial targets to which the new team is committed.

The terrible results don't come as too much of a surprise, considering Cryan said 24 hours ago that the bank would scrap dividends for 2015 and 2016 while it concentrates on bringing the bank back to profitability.