Deutsche Bank expects further big legal costs this year to deal with a raft of scandals that have hurt profits and dogged its reputation but is coming closer to ending its litigation nightmare, its chief executive said on Thursday.
“I am cautiously confident that we are gradually approaching the home straight as far as our litigation is concerned,” John Cryan said in a speech to the annual meeting of shareholders.
Germany’s biggest lender has currently set aside provisions of 5.4 billion euros ($6 billion) to settle pending litigation and expects to see further significant charges this year, Cryan said.
Legal charges were in part to blame for Deutsche Bank recording a net loss of nearly 7 billion euros last year.
Deutsche Bank was making progress in improving its operations and had already completed much of its work in cutting its balance sheet, Cryan said.
The lender was on track to reach its target Common Equity Tier 1 capital solvency ratio of at least 12.5 percent of risk-adjusted assets, although “discipline” remained essential, it said.