Deutsche Bank (NYSE:DB) has announced it would likely miss its pre-tax profit target of 10 billion euros for 2011. Citing the likelihood of losses on its exposure to Greece, and a tough operating environment for its banking and securities arm, the bank said, however, that it would remain profitable in the third quarter.
The bank is likely to suffer impairment charges of about 250 million euros on the Greek sovereign debt on its books, and is planning to cut about 500 jobs, mostly outside Germany (NYSE:EWG).
According to the bank, “intensifying sovereign debt crises resulted in sustained uncertainties among market participants,” hence the dour outlook for its banking and securities arm.
Expect more of the same from all the top European banks (NYSE:KBE): UBS (NYSE:UBS), Deutsche Bank (NYSE:DB), Barclays (NYSE:BCS), Royal Bank of Scotland (NYSE:RBS), Lloyd’s (NYSE:LYG), and Credit Suisse (NYSE:CS).
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