Deutsche Bank reaches settlement with more than half of Postbank claimants
German lender Deutsche Bank has reached settlements with over half of claimants in its more than a decade-long Postbank litigation and now expects to report a €430.0m boost to Q3 pre-tax profits.
Deutsche Bank AG
€15.82
19:04 01/11/24
Xetra DAX
19,254.97
19:05 01/11/24
Deutsche Bank said late on Wednesday it had struck a deal with more than 80 plaintiffs, roughly 60%, in one of the lender's longest-running legal disputes, including the largest individual plaintiff, which represented "about a third of all claims".
Settlements were made at €31 per Postbank share, representing approximately 45% of the €1.3bn provision booked by Deutsche Bank back in April after a Cologne court indicated that it was likely to rule in favour of the plaintiffs.
"Should Deutsche Bank enter into settlement agreements with additional plaintiffs, this could result in further positive implications on the total provisions taken for the litigation," the bank said.
As of 1115 BST, Deutsche Bank shares were up 2.78% at €14.40 each.
Reporting by Iain Gilbert at Sharecast.com