FRANKFURT, April 29 (Reuters) – Deutsche Bank (DBKGn.DE), opens new tab shares were down 6% by midday on Monday after news that a long-running lawsuit claiming it underpaid for its purchase of its giant Postbank division could cost up to 1.3 billion euros ($1.39 billion).
The issue is a blow to Germany’s largest lender, which last week posted better-than-expected earnings that boosted its shares. It is the latest in a string of problems to arise at Postbank.
Analysts at JPMorgan and RBC cut their target prices for Deutsche Bank, despite rating the bank “overweight” and “outperform”, respectively.
“It is disappointing that improved performance and a constructive operating environment are overshadowed by legacy litigation from a long time ago,” RBC analysts wrote in a note to clients.
Deutsche began its acquisition of the no-frills Postbank, with its millions of clients and roots in the country’s postal system, during the 2008 global financial crisis.
Source: REUTER
